Login or register (free and only takes a few minutes) to participate in this question.
You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
19:35 Dec 7, 2003
English to English translations [PRO] Bus/Financial
English term or phrase:unwind this trade
[...] people are positioned in the front end of the curve.
The bond market looks increasingly like a coiled spring, with investors levered to the Fed’s virtual promise to stay on hold.
I’m not looking for a surprise Fed move in the first quarter of 2004, but the bond market will eventually have to ***unwind this trade*** -- and it could be messy.
Explanation: The Fed is adopting a cautious stance, in spite of signs of continous improvement (GDP data, employment, etc.) Although the Fed is trying to tell it is still interesting to invest in bonds, they are losing attractiveness more and more compared to investing in stocks.
Explanation: that's to say that if they ere net buyers of bonds, they will have to sell their holdings , all more or less at the same time, and this would cause a huge decline in price, even a panic selling, or a "mess"
I hope it helps :-)
exp financial industry
JH Trads United States Local time: 02:03 Native speaker of: Spanish, French PRO pts in pair: 23
42 mins confidence: peer agreement (net): +1
undo what it has done
Explanation: this is tongue-in-cheek - unwind a trade is used figuratively here and means that the Fed will eventually have to go back on its promise to stay on hold.
unwind a trade is used in options parlance to undo a deal.
20 years in the business - most of it managing translation service for an investment bank