Wednesday, October 23, 2013

Fandango, Contango and Backwardation

Fandango:
  1. 1.
    a lively Spanish dance for two people, typically accompanied by castanets or tambourine.
  2. 2.
    a foolish or useless act or thing.
    "the Washington inaugural fandango"
    "And the long-term trend remains in mortgage lenders’ Grim Fandango. That is, zone of stalled mortgage purchase applications."

Contango is a situation where the futures price (or forward price) of a commodity is higher than the expected spot price.
Backwardation is the market condition wherein the price of a forward or futures contract is trading below the expected spot price at contract maturity
Contango is the normal situation.  You expect prices to go up in the future.  Backwardation can occur when there are tight supplies of a commodity now, which are expected to increase, causing the price to fall later.

Contigo is Spanish for "with you", i.e. "quiero ir contigo" means "I want to go with you".
Conmigo is Spanish for "with me", i.e. "por favor ven conmigo" means "please come with me".
Mendigo is Spanish for beggar or panhandler.
Quango is a British term meaning "quasi-autonomous non-governmental organisation".
Farrago means "a confused mixture".
Mundungo means 1) someone with a foul odor, usually tobacco. "A mundungo monopolist". 2) slang for an illegal immigration.  3) In Harry Potter, the alternate name of Mundugus Fletcher, who was a "smelly sneak thief".
Tortuga means turtle in Spanish, and it is also the name of an island in the Caribbean.

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