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Derivatives in sentence

246 examples of Derivatives in a sentence

In financial markets, an unexpected collapse in real-estate securities and design defects in the derivatives and repo markets combined to damage core financial institutions’ ability make good on their payment obligations.
In the United States, AIG, Bear Stearns, and Lehman Brothers – all with large derivatives and/or repo investments – failed, freezing up credit markets for a scary few weeks.
Not so for the derivatives risks that jeopardized the global economy.
But for derivatives, the analogous efforts are misdirected and won’t save us from the financial fire next time.
We are rebuilding derivatives and related financial structures atop the same, still-active faults.
Financial players use derivatives to transfer risk: one player assumes the risk of, say, euro fluctuation, but doesn’t want yen risk, while for another, it’s the opposite.
Individual derivatives and repo transactions are hardly nefarious.
In the US, the main design defects are in bankruptcy law, which exempts derivatives and repos from most regular bankruptcy constraints.
For example, investors holding derivatives and repo contracts with a weakened financial institution can grab the firm’s assets ahead of – and at the expense of – its regular creditors, possibly sealing its fate, when, with a little extra time, the firm might have survived.
Worse still, because derivatives and repo investors jump to the head of the repayment line in so many ways, they have less incentive to foster market discipline by closely monitoring their counterparties’ solvency and carefully rationing their exposure to any single counterparty.
Other financial players take on more risk because derivatives and repo players’ bankruptcy exemptions put them first.
If investors in derivatives, repos, and credit-default swaps lacked favored treatment, they would behave differently.
The public perceives Fukushima-type risks and derivatives risks differently.
But the derivatives and repo markets present risks that are poorly understood, difficult to communicate in the media, and hard for politicians to debate and resolve.
But little of importance has yet been done to prevent the damage that derivatives and repo bankruptcy priorities could cause in another financial-system meltdown.
New rules to require end-users (such as oil companies using derivatives to guard against unexpected oil-price changes) and others to put up good collateral are being developed.
We should be examining how to make derivatives and repo investors assume the full risk of their decisions when dealing with systemically vital financial institutions.
I am not sure what point Joe is making with respect to derivatives.
But I also noted that there is no reason to think that, in the absence of the legislation, the Commodity Futures Trading Commission under the Bush administration would have asserted sweeping new authority over derivatives and pointed to the legal certainty problem that career lawyers thought was important to address.
Moreover, London's unique role in bringing together the full range of financial services that serve the continent – the City is home to 250 global banks with 160,000 employees and accounts for 80% of Europe's hedge funds, 78% of its foreign-exchange trades, 74% of its derivatives, and 57% of its private equity – would be jeopardized as well.
This was and is the result of an asset bubble fueled by excessive leverage and by the massive transparency issues associated with complex securities and derivatives that were supposed to spread risk, but instead mainly increased the systemic risk already present with excess debt.
Various catastrophe bonds, covering earthquakes and other disasters, and weather derivatives have begun trading on financial markets in recent years.
But momentum is flagging, both on implementing the agreed reforms and on progress in areas like derivatives and shadow banking.
The authors did address whether global imbalances, derivatives, and subprime mortgages posed a threat to financial stability.
Now, 40 years later, the European Commission has proposed – and French President Nicolas Sarkozy and German Chancellor Angela Merkel have endorsed – a turnover tax on all financial transactions, varying from 0.1% on stocks to 0.01% on financial derivatives like futures and credit-default swaps.
If France imposes the tax unilaterally, trading in equities and derivatives will simply migrate to Frankfurt.
Investors are talking of “green shoots” of recovery and of positive “second derivatives of economic activity” (continuing economic contraction is the first, negative, derivative, but the slower rate suggests that the bottom is near).
Advanced economic systems have very complex webs of contracts, such as financial derivatives.
Empowering Financial BankruptcyCAMBRIDGE – Four of the world’s most important financial regulators – the Bank of England, Germany’s Federal Financial Supervisory Authority (BaFin), the US Federal Deposit Insurance Corporation, and the Swiss Financial Market Supervisory Authority – recently asked the world’s derivatives industry to change the way it does business.
The regulators are focusing on an important feature of derivatives contracts that allows the derivatives industry to close out their dealings abruptly with a financially distressed entity, thereby making the institution incapable of recovering.
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