MBS Day Ahead: Without Inspiration and Motivation, Things Can Get Weird

Facebooktwitterlinkedin

Posted To: MBS Commentary

Bond traders are like my 10yr old. If you give them plenty of information to consider and if you lay out the right set of challenges, they're much more likely to stay on task in a relatively predictable way, or at least in a manner that can be reconciled in hindsight. But if you remove the intellectual stimulation and the options for channeling their energy, things can get weird. For my 10yr old, the attempt to channel inspiration-deprived energy might mean using way too much packing tape and recycled cardboard to build one of any number of things (I've seen robot suits, car ramps, ninja weapons, telescopes, just to name a few). For traders, the attempt to channel inspiration-deprived dollars might mean turning to technical analysis. In other words, at a certain point, if there's…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons