registerme
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Post by registerme on Nov 12, 2016 11:39:40 GMT
given that to me it looks low given what's going onYes, that's what puzzled me, and why I was looking it at. EDIT: And I don't understand  .
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Maestro
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Post by Maestro on Nov 12, 2016 12:03:47 GMT
how does a retail investor "buy vol"? There are a lot of good reasons why many of these products aren't available to the retail investor so be careful. Ahead of the EU referendum I bought quite a few option products on IG.com. The options available are reasonably short term, but that didn't matter as the date was fixed. IG have options on most equity indices and major FX rates out to March, and oil and gold to Feb. Sadly they don't have any fixed income options that I can see. VIX isn't my thing - I have never had a position in it, but given that to me it looks low given what's going on that might change very soon. I have investments on three platforms one has a large range of VIX ETFs and ETNs, one has just one and another has none. I will probably stick to IG which has lots. I have crossed out that it looks low, not because it doesn't, but because not everything that I can buy looks cheap at first glance. Hopefully samford71 will have some good suggestions when he has had some sleep. I would stay away from VIX ETFs for long term positions. They have horrible contango costs. Just look at VXX etf vs VIX index.
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Post by valueinvestor123 on Nov 12, 2016 13:32:50 GMT
"I would stay away from VIX ETFs for long term positions. They have horrible contango costs. Just look at VXX etf vs VIX index."
That's it. As do Oil futures/ETFs/ETNs. Absolutely horrible/opaque products. Don't know who buys these things.
If you need short-medium term insurance against a sudden drop, best to sell the Wall St index on IG (cheapest thing to short as dividend yield is low so spread is reasonable, compared to eg FTSE100 etc).
Gold is also relatively cheap to hold via IG actually (around 2.5%pa I believe) and usually has negative correlation with the market.
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Post by valueinvestor123 on Nov 12, 2016 13:44:55 GMT
"Yes, that's what puzzled me, and why I was looking it at. EDIT: And I don't understand " VIX's price at the moment is around 14 (about average or on the low side, historically). My guess is (as markets are closed) you can buy VIX December future at around 17. In December, it will either be rolled over into a January future, where you pay a massive spread, or it will be sold if you don't want to roll over. So the longer you hold the VIX, the more you 'bleed' (and the vol ETFs suffer from this). In 2008, VIX briefly jumped to 80 (while the actual future was around 30 or 40, if I remember correctly). So unless you time it perfectly, impossible to use VIX for anything useful. Same (but not as drastic) for Oil futures. Sorry OT. |
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Post by moonshine on Nov 12, 2016 14:06:38 GMT
Nice to see different languages being spoken on this forum..  |
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adrianc
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Post by adrianc on Nov 12, 2016 14:58:05 GMT
Nice to see different languages being spoken on this forum.. Not just me, then...
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fp
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Post by fp on Nov 12, 2016 16:27:16 GMT
I'm confused, I can't see any mention of "vol" "VIX" "ETF's" or "ETN's" on the lendy website, what does this have to do with rates?  |
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bigfoot12
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Post by bigfoot12 on Nov 12, 2016 18:49:25 GMT
I'm confused, I can't see any mention of "vol" "VIX" "ETF's" or "ETN's" on the lendy website, what does this have to do with rates? Sorry created new thread
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Post by valueinvestor123 on Nov 12, 2016 18:52:23 GMT
samford71 What yield do you see as 'fair value' for these investments? (such as majority of SS loans). I use yield as the main indicator of value for any investment. Struggling assigning a fair value yield to peer2peer..
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Post by bracknellboy on Nov 12, 2016 19:35:11 GMT
.... When you then see another platform charging borrowers 10%+ whilst paying their lenders just 2-3%, and yet no one is complaining, this really shows huge complacency from customers. .... : Not necessarily, if one is of the disposition that the borrowers are the customer, and lenders are the product :-)
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Post by GSV3MIaC on Nov 12, 2016 21:36:02 GMT
Actually I think MONEY is the product, Lenders are just the suppliers. FC, among others, has now decided to tap the wholesale market for much of their supply. 8<.
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Liz
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Post by Liz on Nov 14, 2016 15:58:49 GMT
"We are experimenting with pricing to gauge supply/demand more accurately"
Rates going even lower for more loans then!
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oldgrumpy
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Post by oldgrumpy on Nov 14, 2016 16:28:41 GMT
"We are experimenting with pricing to gauge supply/demand more accurately" Rates going even lower for more loans then! What on earth do SS think they are doing? A good quality large loan (£4M?) to be 12%, while a clearly risky small loan (£250K?) is to be 9% (or less?).... purely because they can get away with it? News for you, Liam and Tim!! Price to risk please, not liquidity, or lose a lot of well-heeled investors who know better. Pricing to liquidity just because you can get away with it casts strong doubts on your own integrity and that of the platform as a whole.
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ablender
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Post by ablender on Nov 14, 2016 16:41:54 GMT
"We are experimenting with pricing to gauge supply/demand more accurately" Rates going even lower for more loans then! What on earth do SS think they are doing? A good quality large loan (£4M?) to be 12%, while a clearly risky small loan (£250K?) is to be 9% (or less?).... purely because they can get away with it? News for you, Liam and Tim!! Price to risk please, not liquidity, or lose a lot of well-heeled investors who know better. Pricing to liquidity just because you can get away with it casts strong doubts on your own integrity and that of the platform as a whole. I totally support that. I have mentioned this before. savingstream, I hope you are listening.
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elliotn
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Post by elliotn on Nov 14, 2016 16:50:15 GMT
"We are experimenting with pricing to gauge supply/demand more accurately" Rates going even lower for more loans then! *gouge
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