Category Archives: derivatives

Derivatives and CLOs: The Scaremongering Continues

Greg
Ip
and Gillian
Tett
both have pieces today on that old friend of ours, systemic risks to
the financial system.
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Market Inefficiencies, CDO Edition

Investment banks are making a fortune when they trade exotic instruments such as CDO equity tranches. And that the buy-side can and should be a lot more aggressive and a lot less trusting when it gets bids which seem far too low.
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How Derivatives Caused the Property Boom

Sitting on the property panel with Bob Toll was Steven Green, of Greenstreet
Partners. He had a very good explanation for the run-up in US property values
in recent years: financial derivatives.
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Why the Size of the Derivatives Market is Cause for Worry

When a market is $300 trillion in size, even a tiny error can have systemic consequences.
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Derivatives: Eisinger Responds

Jesse Eisinger explains why it makes sense to worry about the derivatives markets.
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How Risky is the Derivatives Market?

Derivatives perform much more good than harm, in areas from agriculture to catasrophe insurance. The risks are entirely theoretical; the benefits are very real.
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SEC Official: Insider Trading Makes for Efficient Markets

In a world of important pricing efficiency, you want insiders trading because the price will be more efficient. That is as it should be.
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