The 2008 financial crisis had many causes: herding behaviour, a culture of runaway debt, terrible risk management, second-class regulation and the search for ever-greater returns by foolish investors, to name but a few. But in the popular narrative, much of the blame will always be attributed – rightly or wrongly – to over-the-counter derivatives.
Even the fiercest critics of derivatives recognise they have some social value. After all, farmers have been hedging their production with agricultura
The week on Risk.net, December 2–8, 2017Receive this by email