In June 1999, Robert Merton was the keynote speaker at Risk’s annual US congress, held in Boston. This was less than a year after the near collapse of Long-Term Capital Management, in which Merton had been a partner. But the topic of his presentation was far removed from the LTCM meltdown. Instead, he focused on his conviction that the future of financial innovation lies with integrated financial products.
Such products would help individuals manage their risks more effectively. “Des