Euribor bank box hedge this week

[Directional]

I heard on the grapevine that a bank/hedge fund is supposed to be scaling into a big box hedge on the Euribor futures this week.

Lsep6
Sdec6
SJune7
LDec7

anyone else heard this info?

looks like a condor to me

 

[jmreeve]

No, but I am always very suspicious of these sorts of rumours.

 

[Directional]

yeah - unless you know the source of the rumour, which i dont, although I was told it was on good authority. But how do you know a hedgie doesnt start a rumour deliberately so they can fade it and actually do the exact opposite?

 

[jmreeve]

They always are from a "good authority".

I have been given rumours like this in the past and have often noted that fading the rumour is the right thing to do. I suspect some are started to try to boost liquidity to facilitate the execution of large orders. Will be interesting to so what happens.

Unless I get information first hand from someone I trust and who is in a position to know something, I would never act on any of this.

 

[blingy]

buy the rumour sell the fact