Negative U.S. Rates?… WSJ – Commodity Research Group

October 17, 2019 by Jim Colburn Leave a Comment

Gunjan Banerji, Wall Street Journal, has a nice piece, here, on traders playing the possibility of negative interest rates in the US (but don’t forget there are sellers of these, too):

“Derivatives traders are betting on something once considered inconceivable: zero or negative interest rates in the U.S.

They are scooping up options that would pay out if interest rates fell below zero. The number of bullish contracts outstanding on Eurodollar futures that pay out if interest rates hit zero or fall below has increased to about 1.2 million, according to CME Group data through September.”

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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