- Kinder Morgan (KMI) to Buy El Paso (EP) for $38 Billion (includes assumption of debt outstanding at El Paso Corporation and debt outstanding at El Paso Pipeline Partners, L.P. (NYSE: EPB) - BusinessWire
- Hedge fund manager Kyle Bass, of Hayman Capital, who timed the subprime mortgage crash right (via credit default swaps) and banked coin, was featured in Michael Lewis's new book "Boomerang: Travels in the New Third World", and it appears Bass is bullish on gold and guns and has a fort ready for battle. Ultimate risk management. "Kyle Bass had purchased what amounted to a fort: a forty-thousand-square-foot ranch house on thousands of acres in the middle of nowhere, with its own water supply, and an arsenal of automatic weapons and sniper rifles and small explosives to equip a battalion" (h/t ZH). What about a high voltage fence?
Michael Lewis provided a lengthy excerpt from his book at TODAY Books, where he mentions Bass's sovereign CDS bets (Greece and France). Bass thinks there will be a "cluster of sovereign defaults" and is hedging against currency debasement. He also said to buy put options on Japanese government bonds at the Delivering Alpha conference.
- "Bored With The Blowout In PrimeX? Looking For The Next "Big One"" - Zero Hedge [Markit's TRX-II is a synthetic total return swap index referencing CMBS] - read post on PrimeX
- US to Experience Stagflation Worse Than 1970s: Jim Rogers - CNBC
- "The Volatility Exchange" - PointsAndFigures
- Here is more information on the VolX Indices and VolContract Futures (VolX pdf, VolContract Futures charts). You can trade the realized volatility of an underlying asset, index, or instrument intra-day via 1-Month 3-Month, and 12-Month VolContract futures. When comparing VolContract futures to implied volatility instruments, this was an interesting explanation from their FAQ: "VolContract futures give the market participant exposure to both implied-like pricing and realized pricing all in one instrument. In other words, the contracts have perception of the future risk and the reality of actual risk embedded within their structure. Instruments on implied volatility can only address the perception of risk – and they can capture that only through options pricing."
- "China Made A "Secret Offer To Save The Euro" - Business Insider