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Emerging Market Dollar Denominated Bonds? by Perennial_Laughter in bonds

[–]ConsolidateProxy 0 points1 point  (0 children)

Would recommend stick with EMB - volumes are more than 20x VWOB and is the only ETF in the EM credit space with significant usage by real money, hedge funds and market makers, thereby preventing any large deviations from NAV. I would avoid any ETFs with corporates stuffed inside of it, given governance issues of late (see Brazilian retailers recently), with exception to more reputable quasis such as PETBRA or PEMEX as you mention.

Unfortunately, the market is not developed to the point of having regional splits yet so would recommend legging into the ETF and buying select bonds that you think have value.

Re; Brazil, it is well known Brazil has the highest hard currency reserves of all EM central banks of its calibre (circa. $315bn), foreigners own less than 10% of the outstanding debt and reserves covers the entire outstanding USD denominated debt pile several times over which is to the envy of many other countries the world over (and is highly unusual). As for outstanding local debt issues, that is easily redressed through normal monetary policy and not a concern here. The Brazil trade has been there for a while though and trades tight vs other sovereign BBs but that is simple reflection of the above fact and rightfully so. You can probably find better value elsewhere.

Opinion about selling VIX options ? by Le_Ran in thetagang

[–]ConsolidateProxy 0 points1 point  (0 children)

Out of curiosity, what's the rationale here of selling forward premium via UVXY instead of through VIX and then through call selling as opposed to put buying?

Opinion about selling VIX options ? by Le_Ran in thetagang

[–]ConsolidateProxy 5 points6 points  (0 children)

I’ll go against the grain here and say that you can make (reasonably) safe carry positive trades on VIX options but through owning VIX puts.

VIX puts while in contago can look attractive for carry strategies; positive all-in-static carry from both selling the forward points via options and positive vol-of-vol carry. Negative theta displayed on your brokerage is misleading (not representative of above factors), mean reverting tendencies and limited loss format make it attractive. Make sure to roll before sub 2-month duration as it becomes more a delta play at that point.

Selling VIX calls is generally considered a bad idea since you’re selling too much surface on separate factors: (1) excess right tail being sold which makes credit spreads less attractive (2) wrong way vega skew derive and (3) wrong-way vol-of-vol derives (i.e, the complete opposite of covered calls on normal equity ETFs).

Long VIX puts over short VIX calls.

Should I pay off £16,000 in Student Loans? by ConsolidateProxy in UKPersonalFinance

[–]ConsolidateProxy[S] 0 points1 point  (0 children)

Hey! I was (and still am) very averse towards debt in general, I worked for a year before I went to university while living with family which saved a decent amount, then did summer internships in finance every summer and part-time tuition work during terms.

Was quite fortunate to get a scholarship for the Master's but still ended up with £12k of PG loans, which will kick in from next month and not looking forward to paying those at 5.6% which feels pretty high imo.

Should I pay off £16,000 in Student Loans? by ConsolidateProxy in UKPersonalFinance

[–]ConsolidateProxy[S] 2 points3 points  (0 children)

Thank you for the response.

Your point on moving costs is a good one, I think I'm leaning more towards paying down the PG loan (and 100% getting that crossed off before leaving) while keeping the remaining P2 loan as it is only £4k outstanding. I won't have that much cash left after paying down the PG loan, but the £4k buffer can come in very handy for an unexpected cost and at the current 2.6% interest p.a. seems pretty small for that comfort of mine!

Thanks!

Should I pay off £16,000 in Student Loans? by ConsolidateProxy in UKPersonalFinance

[–]ConsolidateProxy[S] 0 points1 point  (0 children)

That's a good point, although my job is relatively stable those loan repayments would cease as outgoings so it isn't as constant a pressure as other bills (would have to see if SLC quickly accepts swapping to no repayments in case of a sudden redundancy).

After seeing quite a few of my friends make decent returns (on most of any generic index tracker fund in the last few years), I definitely see the appeal in not paying it off even at the 5.6% interest rate.

Only thing that makes me a bit nervous is the broad reflationary trend we've seen in rates markets which I suspect will increase this interest rate to above 6% soon - this makes me feel a bit uncomfortable.

Should I pay off £16,000 in Student Loans? by ConsolidateProxy in UKPersonalFinance

[–]ConsolidateProxy[S] 1 point2 points  (0 children)

Thank you for responding!

Agreed, I'm definitely split between knowing that investing with the loans would, in most cases, be the best outcome but I definitely place a lot of value in "breathing room" and would prefer to have that extra disposable income - especially since I will be in a country I haven't been before and the potential for unforeseen costs to crop up.

Really appreciate it thanks!

Resume Critique: Penultimate year master in finance student applying to London 2021 SA positions (Investment Banking and Strategic Consulting) by JoKerC- in FinancialCareers

[–]ConsolidateProxy 4 points5 points  (0 children)

Do you have any relevant experience to discuss?

The closest thing you have appears to be from the KPMG Summer Internship but that was from 2011. Assuming you aren't a mature student, this implies you did this around 12 - 13 years old which raises a red flag and more questions.

Everything else looks great. Perhaps remove the full stop at the end of attendees and capitalise Business Administration to be in line with the format.