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ObergOnline
Welcome to ObergOnline, the home of Oberg Capital Markets Consulting, LLC
Eric Oberg spent nearly seventeen years in the Fixed Income, Currency &
Commodities Division of Goldman, Sachs & Co., before retiring as a Managing
Director in 2005. He worked in various sales, trading, capital markets and
management capacities across the Money Market, Corporate Bond, Asset
Backed Securities, and Credit Derivatives Business Units. Mr. Oberg is a 1988
graduate of Brown University, with a dual concentration in Political Science and
Economics.
Welcome to ObergOnline, the home of Oberg Capital Markets Consulting, LLC
Eric Oberg spent nearly seventeen years in the Fixed Income, Currency &
Commodities Division of Goldman, Sachs & Co., before retiring as a Managing
Director in 2005. He worked in various sales, trading, capital markets and
management capacities across the Money Market, Corporate Bond, Asset
Backed Securities, and Credit Derivatives Business Units. Mr. Oberg is a 1988
graduate of Brown University, with a dual concentration in Political Science and
Economics.
Recent Columns Published on RealMoney/TheStreet.com
On Leveraged ETFs:
Why Short Sector ETFs Aren't So Smart
Looking Deeper into the Pitfalls of Short Sector ETFs
The Perils of the ProShares Ultra Shorts
Eric Oberg on the UltraShort Treasury ETF
UltraShorts and the Fall of the Uptick Rule
Money Heaven
Picking Off the "Dumb Guy"
Abacus vs. "The Ultras": Things That Make You Go "Hmmm..."
Thought Pieces on the Markets and Regulation:
When Capitalism Ate Itself
Dinosaurs, Golfers and Football Players--Rethinking Regulation
Meet the "KATH" REIT: A Market Catharsis
Good Luck Pricing That Fire Sale
Incentives Matter
The Uptick Rule: Let's Get it Right
Uptick Rule: Form vs. Substance
AIG Bailout: No "Gift" to Goldman
Critics Are Off the Mark on TLGP
Open Comment Letter to the SEC Advocating Reinstatement of the Uptick Rule
Tax Policy and Our Leverage Culture
Congress, Let's Play Make a Market
On Credit Derivatives and Securitization:
Credit Default Swaps 101
Advanced Studies in CDS
Securitization's Role in the Financial Crisis: Part I
Securitization's Role in the Financial Crisis: Part II
Securitization's Role in the Financial Crisis: Part III
On Leveraged ETFs:
Why Short Sector ETFs Aren't So Smart
Looking Deeper into the Pitfalls of Short Sector ETFs
The Perils of the ProShares Ultra Shorts
Eric Oberg on the UltraShort Treasury ETF
UltraShorts and the Fall of the Uptick Rule
Money Heaven
Picking Off the "Dumb Guy"
Abacus vs. "The Ultras": Things That Make You Go "Hmmm..."
Thought Pieces on the Markets and Regulation:
When Capitalism Ate Itself
Dinosaurs, Golfers and Football Players--Rethinking Regulation
Meet the "KATH" REIT: A Market Catharsis
Good Luck Pricing That Fire Sale
Incentives Matter
The Uptick Rule: Let's Get it Right
Uptick Rule: Form vs. Substance
AIG Bailout: No "Gift" to Goldman
Critics Are Off the Mark on TLGP
Open Comment Letter to the SEC Advocating Reinstatement of the Uptick Rule
Tax Policy and Our Leverage Culture
Congress, Let's Play Make a Market
On Credit Derivatives and Securitization:
Credit Default Swaps 101
Advanced Studies in CDS
Securitization's Role in the Financial Crisis: Part I
Securitization's Role in the Financial Crisis: Part II
Securitization's Role in the Financial Crisis: Part III
 |
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"In case you missed it, or
didn't read this column,
TheStreet.com ran a guest
piece last month by Eric
Oberg explaining how
inverse and leveraged funds
don't always provide the
exact returns they're shooting
to mimic in any given index.
The piece spawned a flood
of copycat articles, trying to
pick up on the fact that
providing 200% or 300%
leverage is tricky since
working with futures on a
daily basis is more art than
science.
The original by Oberg, a
retired Goldman Sachs
managing director in fixed
income, commodities and
currencies, still might be the
best. Now, he has a follow-up
on that column looking at the
reaction and bringing up
some more important points
about using leverage with
ETFs."
--IndexUniverse.com
Jan 14: The Best ETF
Articles In The National Media
didn't read this column,
TheStreet.com ran a guest
piece last month by Eric
Oberg explaining how
inverse and leveraged funds
don't always provide the
exact returns they're shooting
to mimic in any given index.
The piece spawned a flood
of copycat articles, trying to
pick up on the fact that
providing 200% or 300%
leverage is tricky since
working with futures on a
daily basis is more art than
science.
The original by Oberg, a
retired Goldman Sachs
managing director in fixed
income, commodities and
currencies, still might be the
best. Now, he has a follow-up
on that column looking at the
reaction and bringing up
some more important points
about using leverage with
ETFs."
--IndexUniverse.com
Jan 14: The Best ETF
Articles In The National Media
| O ObergOnline.com |
One of the advantages of
subscribing to RealMoney
is having one of our pros
warn you away from
buying a certain stock or
making a specific trade.
Sidestepping an investing
disaster can sometimes
mean the difference
between retiring early and
not being able to retire at
all.
RealMoney contributor
Eric Oberg, a former
managing director at
Goldman Sachs, made
two of these
disaster-preventing calls
last Dec. 22, when he
wrote a compelling
argument warning
subscribers against two
exchange-traded funds
(ETFs) that are designed to
provide gains by shorting
the indexes they follow.
Oberg's article, "Why Short
Sector ETFs Aren't So
Smart," warned investors
against ProShares
UltraShort Financial
ETF(SKF Quote), a short
play on financials, and
ProShares UltraShort Real
Estate ETF(SRS Quote), a
short play on the real
estate market.
Both have been disasters.
Since Dec. 22, the SKF has
underperformed the implied
short of its counterpart long
fund -- the Ultra Financials
ProShares(UYG Quote) --
by 84.6%, while the SRS
has underperformed the
implied short of its
counterpart long fund - the
Ultra Real Estate
ProShares(URE Quote) --
by 90%.
Subscribers who followed
Oberg's advice saved a
lot of cash. A $100,000
investment made in SKF on
Dec. 22 is now worth only
$48,600. A $100,000
investment made in SRS on
Dec. 22 is now worth only
$41,900.
Both SKF and SRS were
based on underlying
indices being down, and
yet somehow, these funds
had the wrong execution of
an idea that proved correct.
RealMoney: The site for
smart investors.
Dave Morrow
Editor-in-Chief
April 27, 2009
Click here for a free trial to
RealMoney.
subscribing to RealMoney
is having one of our pros
warn you away from
buying a certain stock or
making a specific trade.
Sidestepping an investing
disaster can sometimes
mean the difference
between retiring early and
not being able to retire at
all.
RealMoney contributor
Eric Oberg, a former
managing director at
Goldman Sachs, made
two of these
disaster-preventing calls
last Dec. 22, when he
wrote a compelling
argument warning
subscribers against two
exchange-traded funds
(ETFs) that are designed to
provide gains by shorting
the indexes they follow.
Oberg's article, "Why Short
Sector ETFs Aren't So
Smart," warned investors
against ProShares
UltraShort Financial
ETF(SKF Quote), a short
play on financials, and
ProShares UltraShort Real
Estate ETF(SRS Quote), a
short play on the real
estate market.
Both have been disasters.
Since Dec. 22, the SKF has
underperformed the implied
short of its counterpart long
fund -- the Ultra Financials
ProShares(UYG Quote) --
by 84.6%, while the SRS
has underperformed the
implied short of its
counterpart long fund - the
Ultra Real Estate
ProShares(URE Quote) --
by 90%.
Subscribers who followed
Oberg's advice saved a
lot of cash. A $100,000
investment made in SKF on
Dec. 22 is now worth only
$48,600. A $100,000
investment made in SRS on
Dec. 22 is now worth only
$41,900.
Both SKF and SRS were
based on underlying
indices being down, and
yet somehow, these funds
had the wrong execution of
an idea that proved correct.
RealMoney: The site for
smart investors.
Dave Morrow
Editor-in-Chief
April 27, 2009
Click here for a free trial to
RealMoney.
Eric Oberg, Rick Bensignor,
Ron Insana, and Don Dion,
all great contributors to
TheStreet.com, have helped
me immensely in figuring
out this difficult new
landscape.
Jim Cramer
Jim Cramer's Getting Back to
Even
Ron Insana, and Don Dion,
all great contributors to
TheStreet.com, have helped
me immensely in figuring
out this difficult new
landscape.
Jim Cramer
Jim Cramer's Getting Back to
Even