MUST READS: Robert Arnott, Options – Who makes money?, CLOs, Securitization Future

Must read – THE “3-D” HURRICANE FORCE HEADWIND – Robert D. Arnott – on deficit, debt, demographics, and asset allocation for the years ahead – RAFI Newsletter by Research Afiliates – hattip Prieur du Plessis
————

Must read – Options, who makes more money? Buyers or sellers? – Do Black Swans Negate Option Premiums? – Surly Trader

————

liquidity returning? – The CLO market may be making a comeback – Amazingly, the primary CLO market, which has been shut down since late 2007, may be making a comeback in 2010. The volumes will be a fraction of the peak, the capital structure will be simple, and the equity structures will be thicker, but the deals will get done … This may be the first securitization market that comes back (even as a shadow of what it used to be) without government (TALF) assistance. … – Sober Look Blog

————