nottheaverageactuary

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Derivatives designed for the next crisis

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An interesting read, indicating how banks are designing new financial derivatives to increase their returns, given all the regulations that have been put into place post 2008.

Are these new products a time bomb waiting to explode? Time will only tell

http://www.bloomberg.com/news/2014-08-12/swaps-reincarnate-boosting-debt-bets-in-new-era-credit-markets.html

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One thought on “Derivatives designed for the next crisis

  1. What I found interesting is that they use the emergence of new, complex derivatives as a sign that the market is ready to crash. Do you think that is true?