Long-term swap

I did something yesterday I swore I would never do again. I went long diamonds and platinum and then immediately traded them for a position in a long-term swap. Gotta get the counterparty to sign one of them “Master Agreements”…



Heartfelt congratulations Joey. May your counterparty’s gain not be AF’s loss! Need any tips on pricing that swap? http://infoproc.blogspot.com/2007/05/pricing-wall-street-marriage.html

JD - are you covered under an ISDA?

Let’s hope for a lifetime of dividends…

wow, congrats! It’s always fun reading your posts, but this one was especially nice to read.

Congrats!! It actually took me a while to figure out what you are talking about…

Congratulations, Joey, and all the best to both of you!

Just make sure you don’t end up short any puts on the deal.

lose your shorts before you initiate the swap or you won’t know if…

Congratulations, and I wish the best for both of you.

Congrats and good luck Joey.

OH - NOW i get it! Duhhhh! haha. Very Clever, and all the best to you JDV!

Congrats Joey!

Congrats Joey Are you going to sign a Limited Partnership Agreement? I hope it is an evergreen fund. Best of British Loxley

very cute. congrats joey!

Took me 2 coffees to figure this one out…man, I’m an idiot. Congrats.

I just can’t bring myself to offer a “congratulations” but ill offer a very genuine “best of luck”. Using my own personal experience as a basis, I just feel the depreciation in value for these types of long term swaps can increase at fairly rapid rate as time goes by. I hope you have really considered a solid hedeging instrument against the inherent risk involved in these types of investment vehicles. Again, best of luck to you!

Joey - Can you pls explain the economics and the motivation behind the trade? Good luck as well. Thanks.