Have you ever heard that phrase “Many traders have never seen___”?  For example:

  • Many traders have never seen a real vol spike. You’ve probably heard ad nauseum about how short vol (VIX) sellers will get crushed one day.
  • Many traders have never seen a real equity correction. For almost eight years, buying on dips has been a good strategy.
  • Many traders have never seen buying fixed income against the bond (or tens) yield downtrend line in the US not work. There are many old traders who’ve made a career on having the 30+ year downtrend line in the bonds hold.
  • Many traders have never seen an inflation spike. Inflation has been fairly tame the past two decades.

To that list, you can now add:

  • Many traders have never seen real year-end funding pressure, aka the year-end turn.

You can read the rest of this article on Seeking Alpha.  [https://seekingalpha.com/article/4134111-return-year-end-eurodollar-futures-turn]