CMEGroupFedWatchTool-FedFundsFutures 系统标签: futurescmefedfundsffertool 1CMEGroupFedWatchTool-FedFundsFuturesProbabilityTreeCalculatorBY:JEREMYLAO,DIRECTOR,INTERESTRATEPRODUCTSAGHAMIRZA,MANAGINGDIRECTOR,GLOBALHEADOFINTERESTRATEPRODUCTSTheFedWatchtoolcalculatesunconditionalprobabilitiesofFederalOpenMarketCommittee(FOMC)meeti...
The CME FedWatch Tool uses the prices of fed funds futures to predict how the Fed might act concerning interest rates.2The futures, which are traded on the CME, allow investors to speculate or hedge based on what they expect in the future direction of this key interest rate. The market pr...
Fed Watch Tool’s Assumption and Interpretations: Probability of a rate hike is calculated by adding the probabilities of all target rate levels above the current target rate. Probabilities of possible Fed Funds target rates are based on Fed Fund futures contract prices assuming that the rate hike...
The role of options on futures in hedge fund portfoliosHAMLIN LOVELLOriginally published in the June | July 2015 issueShare The most obvious reason for the significant increase of interest in interest rate options is that “for the first time since 2008, market participants expect the Fed to ...
Generally speaking, both CME and LCH calculate the default fund by performing a simulation on all accounts held. These simulations are “extreme but plausible” market movements. Think of these as what might happen if the Fed and other bodies cut interest rates 100 bp over a 5 day period, ...
US regulators’ latest attempt to make the Federal Reserve’s discount window part of banks’ everyday liquidity plans could end the tool’s decades-old stigma, according to JPMorgan Chase & Co. Banks have long been wary of tapping this Fed facility intended to provide emergency funds to firm...
A Fed Policy Shift Could Be Near. Buying Bank Stocks Looks Like a Good Strategy. Steven M. Sears – Barron’s If fairy tales were made into parables about investing, the boy who cried wolf would run a tail-risk fund. To protect his stocks, the vigilant boy would perpetually buy bearish...