SI87: Dealing with stress when you bring down a bank ft. Nick Leeson

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 10 May 2020

⏱️ 87 minutes

🔗️ Recording | iTunes | RSS

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Summary

We’re joined today by special guest Nick Leeson, who is famous for the collapse of Barings Bank, one the oldest banks in the world at the time, to discuss liquidity risk in the markets, dealing with stress in extraordinary situations, the benefits of asking yourself the difficult questions, problems when interpreting vast amounts of data, what Nick looks for when investing today, the importance of communicating your feelings, and lots more. If you would like to leave us a voicemail to play on the show, you can do so here. Learn more about the Trend Barometer here. IT's TRUE - most CIO's read 50+ books each year - get your copy of the Ultimate Guide to the Best Investment Books ever written here. And you can get a free copy of my latest book "The Many Flavors of Trend Following" here. Send your questions to [email protected] Follow Niels, Jerry, Moritz & Nick on Twitter: @TopTradersLive, @RJparkerjr09, @MoritzSeibert and @TheNickLeeson And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast. Episode Summary 0:00 - Intro1:43 - Macro recap from Niels3:16 - Weekly review of returns5:18 - Niels: What key decisions have shaped your life so far?7:59 - Niels: Can you describe the period between 1992 & 1995?12:44 - Niels: What do you remember about the supposed ‘complex’ products that your were trading?16:19 - Moritz: What was it like trading in Indonesia?20:06 - Moritz: How did you end up being sent abroad to run a business for a bank?26:34 - Moritz: What type of products did you trade at the SIMEX?29:32 - Niels: What are things you look for in a person or organisation you would want to invest with?34:57 - Niels: You advise large businesses, so what are the discussions you are currently having with your clients?49:39 - Moritz:What was your thinking & process while attempting to recover huge losses?55:41 - Niels: Do you talk with your clients about a market's liquidity risk?58:53 - Niels: How has electronic trading made markets more liquid or less liquid?1:02:16 - Niels: Do you see similarities between today’s scandals, and the behavious of past financial scandals?1:05:49 - Moritz: How do you trade today, and what do you think is important is for good trading?1:11:23 - Niels: Describe how you’ve dealt with stress throughout extraordinary situations?1:17:01 - Niels: What are the key things you try to teach your kids, based on your experiences?1:18:57 - Performance recap1:19:57 - Moritz: Tell us about Bull And Bear Cap?1:21:51 - Moritz: Are you continually asked about your history with Barings Bank? Subscribe on:

Transcript

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0:00.0	You're about to join Jerry Parker, Maritz Siebert, and Nealz Kostrup Larson on their raw and honest journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy. Welcome to the Systematic Investor podcast series.
0:22.5	Welcome or welcome back to this week's edition of the Systematic Investor series
0:26.1	with more at Sieber and I, Niels Kastel Larsen, where each week we take the pulse of the global
0:30.2	market through the lens of rules-based investing.
0:33.8	For long-term listeners, our conversations are intended to keep you focused and inspired to continue your trend-following journey.
0:40.3	And if you're newer to the show, our hope is that today's episode will trigger some curiosity to check out the back catalog and all the past episodes that you may have missed.
0:50.5	Today, we bring you another guest, a guest that for some needs no introductions and for the younger part of our audience may not be a name that you are familiar with.
0:59.6	Our guest today is Nick Leeson, who made headlines around the world back in the mid-90s for his trading.
1:06.3	Nick, welcome to the show. It's good to have you here. of course good afternoon to you moritz hope you're both
1:12.6	doing well hello neels good afternoon and hi nick i think you're in ireland so good afternoon
1:19.2	to you great to have you on the show yeah looking forward to it guys likewise nick now we have
1:25.8	to talk to you about of course course, but as usual, we're
1:28.6	going to do our quick run-through of the week in terms of what took place inside the trend-fung portfolios
1:34.7	that we work with. So let me suggest to you, Nick, that you take an extra sip of your coffee,
1:40.3	whilst Morris and I just do a quick run-through. Now, of course, yesterday and this entire week, I guess it was all about employment
1:47.2	or maybe rather unemployment, as the markets digested the long-anticipated numbers from the US.
1:54.0	But, you know, despite a drop of 20.5 million in non-farm payroll
1:58.9	and the jobless rate climbing up to 14.7%.
2:02.8	And by the way, also negative revisions to both February and March numbers of some 210,000,
2:08.7	making it the worst-ever employment report.
2:11.4	The equity markets closed out on a strong note this week.
2:15.4	For instance, we now have the NASDAQ up 40% from its March low
	...

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