Global Derivative Debacles: From Theory to Malpractice: 2nd Edition
| Author | : | |
| Rating | : | 4.58 (839 Votes) |
| Asin | : | 9814699896 |
| Format Type | : | paperback |
| Number of Pages | : | 368 Pages |
| Publish Date | : | 2016-02-02 |
| Language | : | English |
DESCRIPTION:
He is a consultant to a number of firms in the area of corporate finance and risk management and has taught in many Management Development Programs, including Manufacturers Hanover Trust, Merck, Sharp & Dohme, Philadelphia National Bank, General Motors, Bunge and Born (Brazil), Rhone-Poulenc (France), Siam Commercial Bank (Thailand), Daewoo (South Korea), General Electric, Dupont de Nemours, Norwest Bank, Bangkok Bank (
Reviews of the First Edition: "This timely and well-written book is a must read for anyone directly or indirectly involved in financial markets and instruments as well as risk management. 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
required reading for risk managers and OTC derivative traders, pass for retail traders J. Pal 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 capital! Hellooooo! The two Noble Prize winners at LTMC somehow overlooked that!In nearly every case covered, the position size was so lar. Derivatives are Zero Sum Surprisingly revealing, in depth review.
What is new in the second edition? A new chapter on JP Morgan-Chase's London Whale, an in-depth discussion of credit-default swaps, and an update of the revamped regulatory framework with Basel 2.5 and Basel III against the backdrop of the Euro crisis, along with a revised and expanded discussion of the AIG debacle. Should derivatives be feared "as financial weapons of mass destruction" or hailed as financial innovations which through efficient risk transfer are truly adding to the Wealth of Nations? By presenting a factual analysis of how the malpractice of derivatives played havoc with derivative end-user and dealer institutions, a case is made for vigilance not only to