Word: spreads
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Some communicable diseases can be traced back to what medical researchers call "patient zero", the first carrier of an illness and often someone who has no symptoms. One of the most notorious examples of this is "Typhoid Mary", Mary Mallon, who is alleged to have spread typhoid fever in New York City and its suburbs between...
...housing had gone up for decades. But, as defaults did rise, the value of these derivatives cascaded and the banks and other institutions which held them were required to take massive losses. At Davos, Russian and Chinese leaders attacked the U.S. for the "failure" of regulators which allowed the spread of toxic derivatives...
...second-to-last trading day for the February 2009 contract at the New York Mercantile Exchange (NYMEX), oil settled with over a $22 spread between the February 2009 and February 2010 contracts. In other words, if a company bought oil on the February 2009 contract, stored it for a year and sold it on the February 2010 contract, it would make more than $22 per barrel, excluding the costs of the operation. This represents a greater than 60% gross return! Since interest, storage and delivery costs should amount to significantly less than the $22 spread, the venture would yield...
...slightly more than the $1.02 per barrel per month price tag that Morgan Stanley had reportedly been negotiating in mid-January. The apparent correction is unlikely to have been caused directly by an institution like Morgan Stanley, but instead by a perception among traders that the average $1.25 spread between monthly contracts is reasonable. Of course, leasing a tanker is an extreme measure of storage, and the cost of storing at a more traditional location is much lower; the spread remains irregularly high, and opportunity still exists for anyone with access to storage cheaper than a tanker...
...order to make money from the arbitrage - and consequently correct the spread - a company would need capital and storage arrangements for the oil. A firm could borrow money to buy oil in the spot market or the front-month futures contract. More money would be needed to handle margin costs of a short contract in the futures market...