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Derivatives in sentence

246 examples of Derivatives in a sentence

The tests were supposed to reveal the true conditions of banks saddled with unaudited toxic assets in housing loans and financial derivatives.
The derivatives market certainly helps spread risk more widely than this superficial calculation implies, but the basic point stands.
The main problem is that the flow of foreign credit has been impaired because US mortgage-backed securities and the derivatives based on them have become nearly unsellable everywhere.
For example, governments should help banks that lend to small- and medium-size enterprises, which are the main source of job creation – or establish new financial institutions that would do so – rather than supporting big banks that make their money from derivatives and abusive credit card practices.
And, if financial innovations like derivatives and short-term repurchase agreements have made markets more volatile and fragile, a Tobin tax could help to stabilize and strengthen them.
Such events are commonly priced in the derivatives market, which puts the price for the S&P event at ten cents on the dollar.
The other principal attack on the Clinton administration’s record targets the deregulation of derivatives in 2000.
But, given the extreme deregulatory approach of President George W. Bush’s administration, it defies belief to suggest that it would have created major new rules regarding derivatives but for the 2000 act; so I am not sure how consequential our decisions were.
It is also important to recall that we pursued the 2000 legislation not because we wanted to deregulate for its own sake, but rather to remove what the career lawyers at the US Treasury, the Fed, and the Securities and Exchange Commission saw as systemic risk arising from legal uncertainty surrounding derivatives contracts.
Aspiring derivatives traders certainly will be more confident of their career prospects.
This debt almost surely needs to be restructured, but, having allowed the banks to leverage themselves beyond any level of prudence and load up on toxic derivatives, the ECB is now warning against any sort of restructuring or write-down.
Another initiative worth watching is the Hong Kong stock exchange’s exploratory project to offer a trading platform for emissions derivatives, which will most likely include conventional pollutants as well as carbon.
A United States Special Inspector General recently issued a report criticizing the US government for failing to insist that AIG’s counterparties in the market for financial derivatives bear some of the costs of bailing out the company.
And the unrestrained expansion of financial markets, notably the proliferation of derivatives, led directly to the crisis that engulfed the Western banking system in 2007-2008.
Moreover, the issuance and trading of derivatives ought to be at least as strictly regulated as that of stocks.
Regulators should insist that traded derivatives are homogenous, standardized, and transparent.
Some derivatives, particularly credit default swaps should not be traded at all.
Through all of this, governments have strengthened bank regulation only slightly, leaving key issues like liquidity creation, exposure to derivatives, and tax avoidance largely unaddressed.
The Obama administration also seems to be heading toward regulating derivatives and financial institutions deemed too big to fail.
America does need a clearinghouse for derivatives, and a much higher percentage of derivative trading should take place on exchanges, rather than bilaterally over the counter.
In 2008, we started at 365% – and this calculation leaves out the pervasive use of derivatives, which was absent in the 1930’s.
The Dodd-Frank financial reforms created the Consumer Financial Protection Bureau, so that privately issued financial products would serve the public better, and created incentives for derivatives to be traded on public markets.
Much more progress toward comprehensive public futures and derivatives markets would help, as would policies to encourage the emerging world to participate more in the US economy.
Thus, total losses on mortgage-related instruments – include exotic credit derivatives such as collateralized debt obligations (CDOs) – will add up to more than $400 billion.
The same is true, for instance, for the derivatives trading system.
When Monte dei Paschi di Siena – Italy’s third-largest bank – revealed that it faced losses of up to €720 million ($970 million) from complex derivatives deals carried out in 2006-2009, support for Bersani’s coalition slipped, owing to the PD’s long-standing ties to the bank.
The largest, most sophisticated banks have become expert at remaining one step ahead of regulators – constantly creating complex financial products and derivatives that skirt the letter of the rules.
In these circumstances, more complicated regulations merely mean more billable hours for lawyers, more income for regulators switching sides, and more profits for derivatives traders.
There is not yet a “Volcker Rule” (limiting proprietary trading by banks), the rules for derivatives are still a work-in-progress, and money-market funds remain unreformed.
Similarly, Chilean-style unremunerated reserve requirements may be easier to evade in countries with extensive trading in sophisticated derivatives.
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