The price is wrong

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The turmoil in financial markets over the past two-and-a-half years has led dealers to rethink the way they price trillions of dollars worth of derivatives. Since mid-2007, unprecedented volatility has caused banks to move away from discounting future derivatives cashflows using Libor. Instead, dealers now say cashflows in collateralised trades should be discounted at a relevant overnight index swap (OIS) rate, while future cashflows in uncollateralised trades should be discounted at the rate