COMEX
Categories: Derivatives, Stocks, Trading
Quick quiz: what does the term "COMEX" typically refer to?
A) A brand of cleaning product
B) A term used for when your significant other has unwarranted communication with an ex (as in "I'm getting pretty tired of the COMEX you've been having with Chantel...")
C) A U.S. navy rank designating the senior member of a ship's communication staff
D) A financial trading platform dedicated to derivatives related to metals
The answer is (D), but we're going to try to get the relationship version of COMEX to catch on.
The financial COMEX, short for "Commodity Exchange," specializes in the trading of metals. So when someone asks about the price of gold, the price you might give them is the one derived from COMEX trading. The organization also provides trading operations for other metals, like silver, copper, and the-still-precious-in-our-eyes zinc.
The COMEX is part of a larger commodity trading organization known as the NYMEX. The two used to operate as separate exchanges but merged in 1994. Both the COMEX and the NYMEX are owned by the CME Group, which also owns the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). This makes the CME Group the main commodity trading organization in the U.S. and a key component of the global trading system.
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Finance: What are High Yield/Junk Bonds?19 Views
finance a la shmoop. what are high-yield or junk bonds? alright well here are low
yield bonds, you know Apple Microsoft you know, safe secure sleep [charts]
like a baby even for Chicken Little those kind of bonds. the sky is not
falling. all right well here are high-yield bonds Sears you know Toys R
Us aren't they bankrupt already best buy well someday bankrupt ,yeah not safe not
secure, the sky among other things like credit ratings is in fact falling. well [definitions on screen]
why do high-yield bonds yield a lot that is they pay a lot of interest to
investors why do they do that answer because they have to. right but
why why do they have to? well because the bonds are risky either the business is
in danger of dying, or the business has borrowed so much money that it's in [ best buy pictured]
danger of not being able to pay back the loans. that is their operating profit is
just barely enough to pay the interest costs on all the loans they've borrowed
so the risk of default is high and investors demand very high interest for
taking on the risk of having to go through a potential bankruptcy. the term
junk was coined in the 1980s when the now-defunct investment bank Drexel [100 dollar bill]
Burnham Lambert sold boatloads of bonds which had dubious creditworthiness in
weak backing and so the boatloads of bonds sank and ended up as basically
junk. and not the Chinese junk that actually sales, a different kind of junk.
anyway unlike your fancy triple-a bonds which you can see here on this lovely [ boat sails on a lake]
table ,those junk bonds were riskier than us women in shark-infested waters with a
bloody nose. so what's the best way to encourage people to do risky possibly
dangerous things ?well pay them a lot of money. so that's why junk bonds yield
such killer returns for investors because otherwise well these things [two people frown in front of bond store]
would never leave the shelf.