I haven’t forgotten to finish the liquidity series, I promise. This is just a brief interlude.
I mentioned a few posts ago I had some relevant life changes which would keep me from keeping up the same productive pace of my blog and long-form Twitter writing content. I think the cat’s out of the bag here:
I recently started working at Moody’s Analytics, and the current plan is to write a quantitative credit series in my idiosyncratic, Lily-rific writing style. I’ll try to include less neologisms, but I’m excited to continue my learning-by-writing journey. I still actively trade equities and cryptocurrencies, and as I see fit, I’ll write more content in both those arenas as well. However, it’s undeniable that fixed income reigns supreme in the markets.
Despite the impact of flows on the equity markets, it’s fairly well known that the equity market tends to be a muddied reflection of the credit situation of the businesses they represent. This gets into pretty basic accounting, and touches on the idea of shareholders’ equity truly being a call option on a firm’s assets. Without a good picture of the credit markets, how do you properly trade equities (especially on longer timeframes, which tend to be less microstructure driven)?
Moreover, there’s some really weird and interesting microstructural effects in credit too. I’m excited to explore it with you all, and share interesting observations along the way.
That said, I didn’t sell out completely. I’ll still be writing here too, mostly when it focuses on speculative or just plain weird ideas. If you like my content and want to learn more about credit with me, check out the new post below:
Moody's Analytics: A Tale of Two Memes: How Gamestop and AMC Impacted the Credit Market
Signing off for now,
Lily
Looks like I've found this site too late, but I do want to say I'm grateful you've shared all these brilliant writings here--the kind of nuanced voice and accessible perspicacity that makes for multiple re-readings a joy to anticipate. Hope to see more!
Not that you're not busy already, but perhaps a primer on credit for the sake of financial reasonability might be a useful endeavor for the sake of all those could become functionality literate in the future.