Analyst Nim Rod is overheard saying the following: “Basis is risk is greater for Financial Futures (as opposed to commodities) because you have interest rate risk, as well as reinvestment risk”. Is this statement true or false?
I’ll go F… the dude’s name is Nim Rod.
That’s just his nickname…his real name is Hugh J. Rod
oh i thought Ram Rod from Boston
ooh i trust him more now. i don’t really know the answer to this, but with commodities you have convenience yield, lease rates, etc… feel like that might get dicier than a straight up financial future. just a guess.
The statement is false; commodity futures have the greatest basis risk.
i’m going out to buy some mechanical pencils and non-erasable pens at CVS. back soon. spongey- we going to grab food with our cocktail or just a cocktail tonight? need to plan lunch accordingly.
Was planning a quick bit before my departure, so liquid only.
fair enough. lunch, here i come. 