The second step is to understand credit default swaps and to recognise that the CDS market offers a convenient way of shorting bonds. In that market the asymmetry in risk/reward works in the opposite way to stocks. Going short on bonds by buying a CDS contract carries limited risk but unlimited profit potential; by contrast, selling credit default swaps offers limited profits but practically unlimited risks.

The asymmetry encourages speculating on the short side, which in turn exerts a downward pressure on the underlying bonds. When an adverse development is expected, the negative effect can become overwhelming because CDS tend to be priced as warrants, not as options: people buy them not because they expect an eventual default but because they expect the CDS to appreciate during the lifetime of the contract.

more excel goodness

excel magic

wow..u gotta read this food blog! although it's been a long time I've been to S'pore…his words + photos are just simply amazing!

"I'm told that every Korean believes that fan death is real," Jeffery Hodges, a professor at Ewha Womans University in Seoul, tells AF. "I've heard as explanation that the belief originated at a time when Koreans were first able to purchase electric fans and used them to such an extent that electrical systems were burdened, so the government spread a rumor that running them overnight was potentially fatal."

Whether you're polishing your resume because you've been laid off or you just like to be prepared, weblog Squawkfox suggests six words you should banish from your curriculum vitae.

The six words or phrases described in the post include:
- Responsible for
- Experienced
- Excellent written communication skills
- Team player
- Detail oriented
- Successful

“To make a change in how you look, you are talking about a significant period of training,” Dr. Kraemer said. “In our studies it takes six months to a year.” And, he added, that is with regular strength-training workouts, using the appropriate weights and with a carefully designed individualized program. “That is what the reality is,” he said.`

While it may look like these Wall Streeters are betting on such a collapse, their embrace of survivalism is an outgrowth of their professional habits of mind: Having observed the economy’s shaky high-wire act from their ringside seats, they are trying to manage their risk and “hedge” against a potential fall. “It’s like insurance,” says an investor who has stockpiled MREs and a hand-cranked radio. “And by the time you need it, it’s way too late.” Leave it for others to weep for the collapse of the social order. These guys would prefer to be in a high-speed boat or ex-military vehicle, heading off toward their fully provisioned compounds in pursuit of the ultimate goal: to win the chaos.

Omit your mailing address.
Who is going to contact you by snail mail anyway? Your email address and cell phone number is all anyone needs to contact you. With your resume floating around the internet, keep some information private.

Figure out what keywords are relevant and use them.
Some HR folks don’t read resumes any more. They have software that scans resumes for relevant keywords. Use nouns, like the names of the computer programs you know. Read tons of job descriptions and notice which words are used over and over.

Include accomplishments in addition to responsibilities.
If you made a suggestion that your boss used, if you saved your company money, if you streamlined the work process, it counts. Don’t be shy about highlighting accomplishments on your resume. Back them up with statistics, if possible. How much money did you save the company? What percentage of the budget was it?