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Traders, Guns & Money: Knowns and unknowns in the dazzling world of derivatives
Description
Written in 2006, just before the current credit collapse, Traders Guns and Money details how the bizarre world of financial derivatives works - and helps explain previous collapses, like the spectacular implosion of LTCM in 1998 which almost tanked the international banking system.
The author, a savvy insider with decades of experience, shows how over reliance on mathematical models, insane amounts of leverage, and most of all, underestimating risk leads to the collapses - and there’s been plenty of them.
A key insight. Money is never made in financial markets, it is merely transferred. Banks, hedge funds, insurance companies and even governments all chase maximum return, and since there’s so much competition, increasingly weird financial derivatives keep being developed, then marketed and exploited until everyone copies them or something blows up. Then a new one gets developed.
Product Details
* Paperback: 352 pages
* Publisher: FT Press; 1 edition (May 15, 2006)
* Language: English
* ISBN-10: 0273704745