Category: FT Alphaville Fantasy Football League 2016/17

We’re now ten weeks into the FT Alphaville Fantasy Football League, so it’s time to look at the Alpha generated by our teams
Continue reading: If something has a Sharpe Ratio of 8.38, does that mean I should sell my grandmother down the river and buy it?

Another week, another enforcement action. “Voidarama” — sorry, you’re outta here for failing to adhere to capital requirements.

The league tables are still steady where it matters, with the top two and bottom two spots unchanged. So partly motivated by that — and partly motivated by a desire to find something moving as fast as the pound — we’ve taken a look at some of the big changers last week.

Continue reading: Week Seven: FT Alphaville Fantasy Football League

We see little practical or political upside for the Justice Department to press Deutsche Bank for a penalty that is so large that it could destabilize the bank and provoke a new financial crisis. This is why we expect the penalty to be structured so the cash payout is less than the $14 billion that seems to alarm the market. We also believe both sides are incented to quickly reach a deal.

That’s via Jaret Seiberg of Cowen on why the Justice Department might — with a strong emphasis on *might* — try to find a way to pull its punches with Deutsche to avoid landing a knockout blow. While there is certainly some political upside to punishing big banks for their past wrongdoings, Seiberg argues there is a much bigger political downside to triggering a financial crisis (or being blamed for triggering a financial crisis). He thinks Treasury secretary Jacob Lew could be minded to “discuss the global ramifications of Deutsche Bank’s financial troubles” with the Justice Department, a scenario that if implausible is at least more likely than the Fed intervening, he writes.

Continue reading: Week Six: FT Alphaville Fantasy Football League

Our league hasn’t been going all that long, but it seems like some congratulations are in order. Specifically self-congratulations.

Despite some trouble at the start of the season with a small number of bad actors, we have managed to clean up the system. Everything is in order. Everyone is on net positive points. Everyone got a net positive score last weekend. Everything is ok. The market works.

Continue reading: Week Five: FT Alphaville Fantasy Football League