FIASCO

Do you know what the difference is between the buy side and the sell side?”
“No, what?”
“The buy side says fuck you and then hangs up. The sell side hangs up and then says fuck you.”

They’re rated AAA or AA, and they’re the only way for an insurance company to play the foreign exchange markets. Isn’t it obvious?

If today’s yield curve is flat, the forward curve is flat. If today’s yield curve is steep, the forward curve is higher and steeper.

forward curve is like a time machine: it tells you what the market is “predicting” the current yield curve will look like at some point forward in time

“Convexity” is an incredibly complex topic far beyond the scope of this book. All you need to know about convexity—in fact, all that 99 percent of people who work on a trading floor know about convexity—is this: Convexity is good

Duration” tells you how risky a bond is. The greater the duration, the greater the risk. For example, a ten-year bond has greater duration—and greater risk—than a one-year bond. That’s it