"QE's Are... Cake" - The Full Walkthru How Bond Traders Manipulate ...

It has gotten to the point where even we are amused how every “conspiracy theory” we suggest becomes proven fact in the span of a few years, usually involving criminality on behalf of at least one (usually more) perpetrator.In today’s most recent instance of “conspiracy theory” becomes “non-conspiracy” fact, we have the not so curious case of one Mark Stevenson, a former bond trader at Credit Suisse Group, who was fined 662,700 pounds ($1.1 million) and banned from working in the finance industry for “deliberately” manipulating a U.K. government bond price. Specifically, what Stevenson did, was to take advantage of the BOE’s POMO auctions in 2011 to sell some 1.2 billion-pounds of existing gilt holdings which he had accumulated previously with the express intention of selling …


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