Vincent Antonin Lépinay
- Published in print:
- 2011
- Published Online:
- October 2017
- ISBN:
- 9780691151502
- eISBN:
- 9781400840465
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691151502.001.0001
- Subject:
- Economics and Finance, Financial Economics
The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes ...
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The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes readers behind the scenes of the equity derivatives business at the bank before the crisis, providing a detailed firsthand account of the creation, marketing, selling, accounting, and management of these financial instruments-and of how they ultimately created havoc inside and outside the bank. The book explains how financial operators and financial products coexist and how this coexistence is tense because the bank deals with innovative products that yield unexpected reactions on unevenly charted markets. The book is also a case study of economic derivation, but rather than look at derivatives as a class of economic goods, it studies derivation as a process.Less
The financial industry's invention of complex products such as credit default swaps and other derivatives has been widely blamed for triggering the global financial crisis of 2008. This book takes readers behind the scenes of the equity derivatives business at the bank before the crisis, providing a detailed firsthand account of the creation, marketing, selling, accounting, and management of these financial instruments-and of how they ultimately created havoc inside and outside the bank. The book explains how financial operators and financial products coexist and how this coexistence is tense because the bank deals with innovative products that yield unexpected reactions on unevenly charted markets. The book is also a case study of economic derivation, but rather than look at derivatives as a class of economic goods, it studies derivation as a process.
Darrell Duffie
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691138961
- eISBN:
- 9781400840519
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691138961.001.0001
- Subject:
- Economics and Finance, Financial Economics
Over-the-counter (OTC) markets for derivatives, collateralized debt obligations, and repurchase agreements played a significant role in the global financial crisis. Rather than being traded through a ...
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Over-the-counter (OTC) markets for derivatives, collateralized debt obligations, and repurchase agreements played a significant role in the global financial crisis. Rather than being traded through a centralized institution such as a stock exchange, OTC trades are negotiated privately between market participants who may be unaware of prices that are currently available elsewhere in the market. In these relatively opaque markets, investors can be in the dark about the most attractive available terms and who might be offering them. This opaqueness exacerbated the financial crisis, as regulators and market participants were unable to quickly assess the risks and pricing of these instruments. This book offers a concise introduction to OTC markets by explaining key conceptual issues and modeling techniques, and by providing readers with a foundation for more advanced subjects in this field. The book covers the basic methods for modeling search and random matching in economies with many agents. It gives an overview of asset pricing in OTC markets with symmetric and asymmetric information, showing how information percolates through these markets as investors encounter each other over time. The book also features appendixes containing methodologies supporting the more theory-oriented of the chapters, making this the most self-contained introduction to OTC markets available.Less
Over-the-counter (OTC) markets for derivatives, collateralized debt obligations, and repurchase agreements played a significant role in the global financial crisis. Rather than being traded through a centralized institution such as a stock exchange, OTC trades are negotiated privately between market participants who may be unaware of prices that are currently available elsewhere in the market. In these relatively opaque markets, investors can be in the dark about the most attractive available terms and who might be offering them. This opaqueness exacerbated the financial crisis, as regulators and market participants were unable to quickly assess the risks and pricing of these instruments. This book offers a concise introduction to OTC markets by explaining key conceptual issues and modeling techniques, and by providing readers with a foundation for more advanced subjects in this field. The book covers the basic methods for modeling search and random matching in economies with many agents. It gives an overview of asset pricing in OTC markets with symmetric and asymmetric information, showing how information percolates through these markets as investors encounter each other over time. The book also features appendixes containing methodologies supporting the more theory-oriented of the chapters, making this the most self-contained introduction to OTC markets available.
Geoff Mulgan
- Published in print:
- 2015
- Published Online:
- October 2017
- ISBN:
- 9780691165745
- eISBN:
- 9781400866199
- Item type:
- book
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691165745.001.0001
- Subject:
- Economics and Finance, Financial Economics
The recent economic crisis was a dramatic reminder that capitalism can both produce and destroy. It's a system that by its very nature encourages predators and creators, locusts and bees. But, as ...
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The recent economic crisis was a dramatic reminder that capitalism can both produce and destroy. It's a system that by its very nature encourages predators and creators, locusts and bees. But, as this book argues, the economic crisis also presents a historic opportunity to choose a radically different future for capitalism, one that maximizes its creative power and minimizes its destructive force. In an engaging and wide-ranging argument, the book digs into the history of capitalism across the world to show its animating ideas, its utopias and dystopias, as well as its contradictions and possibilities. Drawing on a subtle framework for understanding systemic change, the book shows how new political settlements reshaped capitalism in the past and are likely to do so in the future. By reconnecting value to real-life ideas of growth, the book argues, efficiency and entrepreneurship can be harnessed to promote better lives and relationships rather than just a growth in the quantity of material consumption. Healthcare, education, and green industries are already becoming dominant sectors in the wealthier economies, and the fields of social innovation, enterprise, and investment are rapidly moving into the mainstream—all indicators of how capital could be made more of a servant and less a master. This is a book for anyone who wonders where capitalism might be heading next—and who wants to help make sure that its future avoids the mistakes of the past.Less
The recent economic crisis was a dramatic reminder that capitalism can both produce and destroy. It's a system that by its very nature encourages predators and creators, locusts and bees. But, as this book argues, the economic crisis also presents a historic opportunity to choose a radically different future for capitalism, one that maximizes its creative power and minimizes its destructive force. In an engaging and wide-ranging argument, the book digs into the history of capitalism across the world to show its animating ideas, its utopias and dystopias, as well as its contradictions and possibilities. Drawing on a subtle framework for understanding systemic change, the book shows how new political settlements reshaped capitalism in the past and are likely to do so in the future. By reconnecting value to real-life ideas of growth, the book argues, efficiency and entrepreneurship can be harnessed to promote better lives and relationships rather than just a growth in the quantity of material consumption. Healthcare, education, and green industries are already becoming dominant sectors in the wealthier economies, and the fields of social innovation, enterprise, and investment are rapidly moving into the mainstream—all indicators of how capital could be made more of a servant and less a master. This is a book for anyone who wonders where capitalism might be heading next—and who wants to help make sure that its future avoids the mistakes of the past.
