From the Opalesque team: Opalesque has learned that Eidsis Capital is preparing to launch a Hybrid distressed fund which will be named Eidsesis Special. Get information, directions, products, services, phone numbers, and reviews on Eidesis Capital in New York, NY. Discover more Security Brokers, Dealers, and. SEC profile for Registered Investment Advisor (RIA) EIDESIS CAPITAL LLC including address, website, AUM, assets, growth, total accounts, advisory clients, .
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It creates perverse incentives because it breaks the price mechanism, which is the most important eicesis in a free-market economy. Lehman clients couldn’t get full value for assets they didn’t think were at risk.
Ccapital are two caapital of uncorrelated sources of returns, or reserves, in a central banking sense. Developed markets that are the repositories of most of global financial wealth have had de minimis demand for physical gold. It’s absolutely disgraceful that ‘s consequences haven’t been the same as, let’s say, savings and loans in the s.
This copy is for your personal, non-commercial use only. Governments are borrowing more and more, and the spreads of government securities are getting tighter and tighter. Every asset and every dollar that is in custody in a bank, unless specific legal arrangements are made, is re-lent, and as we saw with MF Global and with Lehman, ultimately it is the customer or the investor who bears the counterparty risk. They thought they were simply in custody of Lehman Brothers.
It’s the means of production. They even thought they owned U. It’s normalcy bias, a psychological phenomenon that prevents people from seeing unconventional threats. It’s just capitsl matter of time.
Eidesis Capital LLC
One is to protect the value of part of the portfolio, and the other is to have access to liquidity during market disruptions when you can profit by being able to buy when others do not have access to liquidity.
Mikhailovich, who emigrated to the U. Their trade wasn’t a hedge.
Investors should look for alternative sources of uncorrelated assets or assets whose value is less eidesiss, as opposed to simply looking at the price of those assets. My approach is what investors should do to protect themselves from the consequences.
The disruptive technologies and government policies have created an extremely highly correlated environment with all financial markets and all financial institutions. Rather than enable a quick but extremely painful deleveraging, Western governments are trying to delay it by borrowing significant amounts to supplement economic activity. There is a huge vulnerability. We came up with a vehicle that enables investors to do the same thing.
MF Global’s clients thought they owned commodities. Reserves are essentially hedges or protections, they’re monies or some value that is sitting on the sidelines that can be pressed into service if something happens and you need to rely on these stores of value, for two reasons. That is a very intelligent way to allocate part of your portfolio to this sort of reserves. But they are not liquid during times of disruption.
But the liquidation is what governments don’t want to allow.
Interview With Simon Mikhailovich – Barron’s
You can’t get a fair price; they’re unique, whereas gold is ubiquitous. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. However, in the current environment, gold can produce tremendous real returns because it’s an asset that doesn’t produce any cash flow.
Secular changes that disrupt technologies are traditionally very, very difficult, and many will lose. It is the value of financial assets that declines.
Hedgeable | Sophisticated Investing Made Simple
If we step back from everything that is going on in the U. Many countries have gone through financial disruptions and had their currencies devalued and had all sorts of economic problems, even in the last 20 years.
It is almost as if these disruptive financial technologies enabled overproduction of financial assets. Its valuation is driven exclusively by supply and demand. But capial may come a moment when it doesn’t work, and then what’s a safe haven? With a wealth of experience in structured credit, he co-founded Eidesis Capital in with Michael Sollott, after they completed a buyout of the collateralized-debt-obligation business of St.