Thursday links: competition and liquidity
- abnormalreturns
- July 30th, 2009
Competition will bring down the profitability of high frequency trading. (Falkenblog also Dealscape, The Stash)
“Is it possible that HFT is entirely benign and just provides liquidity to the market? Yes. But that seems improbable to me.” (Felix Salmon, ibid)
The NYSE is moving to New Jersey, kind of. (WSJ)
To what degree was statistical arbitrage to play in the huge rise in volume in energy ETFs? (FT Alphaville)
Newsletter writers are getting a bit more bullish. (Bespoke)
On the continued divergence between the VIX and the CSFB Fear Index. (Zero Hedge)
A skeptical take on the recent Dow Theory “buy signal.” (Barron’s also The Pragmatic Capitalist)
Taking a closer look at Blackrock’s closed-end PPIP fund. (Abnormal Returns also Atlantic Business)
WisdomTree files for an ETF that invests in closed-end bond funds. (IndexUniverse)
As the ETF industry becomes more complex it shifts towards institutional investors who understand the differences between the various fund types that are generally grouped under the ETF rubric. (FT Alphaville)
Bill Gross implies his fellow, less successful, mutual fund managers greedy. (Infectious Greed)
Tighter bond spreads have reduced opportunities. (Breakingviews)
With hedge funds absent bond managers now have a clear field. (Marketwatch)
Hedge funds are compromising on fees. (WSJ)
Rounding up some hedge fund news. (market folly)
On the use of dividend forecasts to build portfolios. (The Psy-Fi Blog)
The Dollar General IPO as a leading economic indicator. (The Stash)
15 more private equity-backed firms that may come back public. (peHUB)
“All signs point to the CFTC putting in trade position limits [for energy futures] by the fall; and those unwanted consequences may affect exchanges and the government as much if not more than the trading firms.” (24/7 Wall St.)
Everyone in the oil markets is a speculator. (Clusterstock)
Putting crisis post-mortems in perspective. (Big Picture)
The case for a V-shaped recovery. (Clusterstock, Curious Capitalist)
“The level of initial claims has fallen fairly quickly – but is still very high (over 580K), indicating significant weakness in the job market.” (Calculated Risk also Free exchange)
New and existing home sales have probably bottomed, but a price bottom is a ways off. (Big Picture)
Goldman Sachs (GS) has a culture that works. (The Big Money)
“Goldman’s integrity and cohesiveness certainly makes it admirable in my eyes. But that does not necessarily mean it is not evil.” (Epicurean Dealmaker also True/Slant)
Can Apple (AAPL) stock continue its run? (Silicon Alley Insider)
The market overreacted to the Yahoo! (YHOO) search deal. (Deal Journal, Breakingviews)
Ten blogs for making sense of the economy. (Blogs.com)
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