Global Derivative Debacles:From Theory to Malpractice
| Author | : | |
| Rating | : | 4.64 (642 Votes) |
| Asin | : | B01076HWJ8 |
| Format Type | : | |
| Number of Pages | : | 600 Pages |
| Publish Date | : | 2013-01-11 |
| Language | : | English |
DESCRIPTION:
Laurent L Jacque is the Walter B Wriston Professor of International Finance & Banking at the Fletcher School of Law and Diplomacy (Tufts University) and Director of its International Business Studies Program. Jacque received the James L Paddock award for teaching excellence at The Fletcher School in 1996. . He is the author of two books — M
required reading for risk managers and OTC derivative traders, pass for retail traders Case studies of financial institutions that blew themselves up using derivatives. Majority of cases involved going all in on a single trade (or series of trades based on one theory), outright fraud, breaking of US securities laws, and traders bypassing internal corporate trading rules.The derivatives themselves didn't fail. It was the application of it filled with stupidity. For example LTMC which leveraged up 30x - if your position falls just 3.3% you've lost 99% of your. DCnLP59 said Derivatives are Zero Sum. Surprisingly revealing, in depth review.
Clear and recurring lessons across the different stories in this volume call not only for a tighter but also "smarter" control system of derivatives trading and should be of immediate interest to financial managers, bankers, traders, auditors and regulators who are directly or indirectly exposed to financial derivatives.The book groups cases by derivative category, starting with the simplest and building up to the most complex — namely, Forwards, Futures, Options and Swaps in that order, with applications in commodities, foreign exchange, stock indices and interest rates. For some of these unfortunate organizations it was daring but flawed financial engineering which brought them havoc. This book analyzes in depth all major derivatives debacles of the last half century including the multi-billion losses and/or bankruptcy of Metallgesellschaft (1
By telling actual stories of how rogue traders and incompetent managers put their firms at risk, the author demystifies the complex world of financial derivatives. His incisive and in-depth analysis of all major derivatives debacles should help the reader understand what happened and avoid future disasters."-- Gabriel Hawawini, The Henry Grunfeld Professor of Investment Banking, INSEAD"The author has written a book whose clarity makes it accessible to a wide range of practitioners and executives, and he brings the technical subject matter to life through the concrete examples of the highest profile failures in the use of derivatives B Craig Owens, Senior Vice Presid