Derivatives in sentence

246 examples of Derivatives in a sentence

This explains, at least partly, why a handful of mega-banks in the US – namely, Citibank, Goldman Sachs, Bank of America, and Morgan Stanley – handle the bulk of derivatives trading.

That creates a vicious cycle: the bailout option for too-big-to-fail banks concentrates the derivatives market among a few major institutions, increasing further their systemic importance.

By separating derivatives trading from government-insured banks, it would have effectively eliminated the sub rosa subsidy.

While the government would still have to back deposits for crisis-stricken banks – even if that meant bailing out the entire institution – it would have had the option of allowing the derivatives trading desks, functioning within separate organizations, to flounder.

This would have helped to undermine the perception that large derivatives dealers are invulnerable, thereby reducing their trading advantage.

While not a cause of price volatility, speculation on derivatives of essential food commodities significantly worsens it.

The major economies should ensure that such derivatives are restricted as far as possible to qualified and knowledgeable investors who trade on the basis of expectations regarding market fundamentals, rather than mainly or only for short-term speculative gain.

Ruling out the connivance of top executives raises an alarming question: Does Jamie Dimon, J.P. Morgan’s highly regarded CEO, have as little grasp of the exposures embedded in his bank’s nearly $80 billion derivatives book as Tony Hayward, the hapless ex-CEO of BP, had of the hazards of his company’s ill-fated rig in the Gulf of Mexico?

This is reflected in the success of recent Hollywood movies such as The Big Short (which has been rightly praised for making complex instruments like derivatives broadly understandable).

In that position, to the consternation of many former Wall Street colleagues, Gensler spent five years working vigorously to implement financial-reform legislation, including pursuing the aggressive regulation of derivatives.

Among other things, it increased transparency for derivatives, raised capital requirements for financial institutions, imposed additional regulations on “systemically important” institutions, and, per the suggestion of Senator Elizabeth Warren, established the Consumer Financial Protection Bureau (CFPB).

Before the global financial crisis, Italy was described as a country of solid banks that were rooted in the local economy and never played with exotic financial instruments such as derivatives.

The US lacks investment in infrastructure and has excess investment in financial derivatives – the result of opaque leverage from over-consumption.

In 2007, Lehman Brothers, AIG, and most other players in the financial markets were earning huge returns by trading derivatives backed by very risky mortgages.

Let’s not forget the essays in central banks’ stability reports on how credit derivatives were benefiting the financial sector.

Financial products like weather derivatives – which insure the harvests and enterprises of SMEs and some of the world’s poorest people – also have potential.

Such measures as the efforts by the European Parliament to regulate the derivatives market or the British government’s ban on short selling in the wake of the financial crisis or the demand to caps bankers’ bonuses are contemporary expressions of the wish to reduce the power of financial speculation to damage the economy.

At the source, capital requirements for currency mismatches in portfolios, together with margin requirements on foreign-exchange derivatives, make sense.

Because all the derivatives were based on the same assets, if anything happened to those assets, all the banks holding the debt would find themselves in the same soup.

What made the spread of derivatives possible was the ease with which the volume of debt for a given set of real assets could be expanded.

CDSs were the means by which derivatives found their way into the portfolios of banks all over the world.

The presidential campaign of US Senator Bernie Sanders, which dominates the intellectual debate in the Democratic Party, has argued for a broad-based tax covering stocks, bonds, and derivatives (which include a vast array of more complex instruments such as options and swaps).

But extending the tax to derivatives is a messy business, because their complexities make it difficult to define precisely what should be taxed.

But they became global through the development of derivatives, which were supposed to increase the stability of the banking system as a whole by spreading risk.

As a paper by Andrew Haldane of the Bank of England and the zoologist Robert May points out, derivatives were like viruses.

As long as banks can make a profit from trading, they will continue to expand derivatives in excess of any legitimate hedging demands from non-banks, creating redundant products whose only function is to make profits for their inventors and sellers.

How to curtail derivatives is now by far the most important topic in banking reform, and the search for solutions should be guided by the recognition that economics is not a natural science.

In the aftermath of the housing bubble’s collapse and extraordinary losses in the derivatives market, Summers noted, banks would have to diminish leverage.

As was true before the crisis, no one is monitoring the almost limitless “virtual” market for derivatives, where money moves freely without official rules or contact with the real economy.

Fukushima and Derivatives MeltdownsCAMBRIDGE – Financial commentators have likened Japan’s earthquake, tsunami, and nuclear catastrophe to derivatives’ role in the 2008 financial meltdown.

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