Anxiety is an instinctively powerful force that stands in the way of good investment decisions. Here are some timeless tips for overcoming its effects. Read more
Bankable Insights: Overcoming Anxiety is Key to Investment Success
Category Archives: Derivatives
27 posts
JPMorgan’s Derivatives Blow-up May Benefit Taxpayers
JPMorgan’s $2 billion derivatives trading loss underscores the need for a properly implemented Volcker Rule. Read more
Top 5 Articles from March
Top posts from last month included articles on the Facebook IPO, five perspectives on the China’s “investment bubble,” and reassessing the concept of the risk-free rate. Read more
Derivatives Roundup: Volatility Trading – Is it the Holy Grail?
Could it be that the Holy Grail has been spotted at the recent Chicago Board Options Exchange (CBOE) Risk Management Conference? Well not quite, but there was much discussion about what I believe to be the most significant development of … Read more
Rethinking the Risk-Free Rate, Exploding a Fundamental Assumption
There is no such thing as a risk-free rate of return, just as there is no such thing as our world without action. Yet, the concept of a bedrock expected rate of return is a good one in need of a better description that is more reflective of reality. Read more
Book Review: Red-Blooded Risk
No one who reads this book will ever again regard risk management as a necessary but unproductive appendage of the financial industry. Other authors have chronicled how quantitative finance influenced investment management, but Aaron Brown has made a compelling case for a far more profound economic impact. Read more
LIBOR Investigation: Investor Trust at Stake
The ripple effect of the potential mis-pricing of LIBOR is huge, ranging from complex swaps and derivatives traded among sophisticated investors to residential mortgages sold to ordinary households. Read more
Peering Through the Labyrinth: Asian ETFs Need More Transparency
The growing popularity of complex synthetic ETFs in Asia have prompted some to question whether existing regulations and disclosure practices are sufficient for investors to fully understand the risks and costs. Read more
Book Review: Managed Futures for Institutional Investors
Investment professionals thinking of offering managed futures should read this primer on the nuts and bolts of managed futures and conventional “how-to” guide to making money. It provides both the solid theoretical underpinnings of the asset class and the practical aspects of incorporating managed futures into a client’s portfolio. Read more
Derivatives Roundup: Simple, But Not Simpler
Could the derivatives market finally be listening to Albert Einstein? As you may recall, Einstein famously stated, “Make everything as simple as possible, but not simpler,” and according to the Reuters article “Simple Options Thrive in Risky World,” that is exactly what is happening. Simple, plain vanilla options that hedge risk are beating out the more exotic, custom-designed option structures. Read more