Derivatives:  How much is too much?

Posted by Tim Hope on 9/17/08 11:56 am

With the derivative market tripling in size in the past five years to over $180 trillion in total notional dollar amount, it is possible that recent upheavals in the financial markets (and the financial industry itself) may have been a result of concern for the proper functioning of the derivatives market.  With so much at stake, there is little margin for error should risk models used by market participants prove to be inadequate in terms of failing to capture unexpected negative eventualities.

To receive email updates from Navellier Market Observations Blog, click here.

• 
• Email
• Comments (0)