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English Usage/Phrase question.

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English Usage/Phrase question. Empty English Usage/Phrase question.

Post by FluteHolder Mon May 28, 2012 7:54 pm

What does it mean by 'Turning some paper' with respect to investment/trading? This is from a British national.

I googled but couldnot find anything relevant.

TIA

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Post by Petrichor Mon May 28, 2012 9:46 pm

Could be referring to making paper profits from potential losses. When the value of debt falls, its yield rises. The issuing company books a gain since it could theoretically buy back the debt at lower than its original face.

Maybe I am overthinking this - but generally it could mean accounting shenanigans to show gains even when the market is calling it a loss of value.

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Post by Jeremiah Mburuburu Mon May 28, 2012 10:48 pm

FluteHolder wrote:What does it mean by 'Turning some paper' with respect to investment/trading? This is from a British national.

I googled but couldnot find anything relevant.

TIA
i haven't heard it before. it could mean buying and selling frequently.

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Post by Merlot Daruwala Mon May 28, 2012 11:44 pm

FluteHolder wrote:What does it mean by 'Turning some paper' with respect to investment/trading? This is from a British national.

I googled but couldnot find anything relevant.

TIA

Paper usually refers to short term unsecured debt issued by corporates. So "turning some paper" probably refers to redeeming existing debt instruments and reinvesting it in new ones.
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Post by Merlot Daruwala Mon May 28, 2012 11:47 pm

FluteHolder wrote:What does it mean by 'Turning some paper' with respect to investment/trading? This is from a British national.

I googled but couldnot find anything relevant.

TIA

Paper usually refers to short term unsecured debt issued by corporates. So "turning some paper" probably refers to redeeming existing debt instruments and reinvesting it in new ones.
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Post by FluteHolder Wed May 30, 2012 4:16 pm

Thanks for trying. I thought I could get it without asking him but had to ask him. It refers to multiple trades within short duration so that the trader gets more commission/rebates from the broker/dealer.

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Post by b_A Wed May 30, 2012 6:54 pm

FluteHolder wrote:Thanks for trying. I thought I could get it without asking him but had to ask him. It refers to multiple trades within short duration so that the trader gets more commission/rebates from the broker/dealer.

It is called "churning". Maybe he said churning and you heard it as turning.

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Post by FluteHolder Wed May 30, 2012 7:18 pm

I didnot hear it. He wrote that phrase. I know 'Churning' and CFTC/NFA warns against it.

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