O Little Tail Of Downside Risk

Continuing our romp through the world of financially-revised, centrally-planned Christmas carol cheer, here is Citi's Matt King with his remix of O Little Town Of Bethlehem. O little tail of downside risk O little tail of downside riskHow still we see thee lie!Awash with deep and dreamless greeksThe spreadsheets cannot lie.Yet in thy dark cells shinethThe markets’ scope for frightThe hopes and fears of traders’ yearsAre met in thee tonight. For selling vol this rangebound yearHas seldom gone astray.With bears asleep, the hedgers keepBeing killed by time decay.And central banks encourageThe reckless search for yieldThey’ve said they’ll do whate’er it takes –No wonder risk appeals. How casually, how frighteninglyThe risks are now dismissed.Spain’s fall to junk, Greek exitThe looming fiscal cliff.For recent years do demonstrateThe power of QE.What matters sovereign solvencyWhe...