John E. Kreznar says:
Big hearings in Congress today about how evil derivatives and the quants who build them are. They are a threat to government as we know it. Don't tell anyone but the "intermediation of political risk" was one of the greatest invention of the 1980s. Combine same with strong crypto and you almost have to feel sorry for the public employees in our midst. Watch out for a little downsizing.
Aw c'mon Duncan. Derivative of what?
Derivative securites. Usually "derived" from some base securities, commodities, or other derivatives. Options, futures, swaps, and other synthetic trading instruments of varying degrees of liquidity and fungibility are all derivative instruments.
What's a quant?
Someone who does valuation of fixed income or derivative securities based on mathematical models. Its a bit of a fuzzy term.
Where was the term ``intermediation of political risk'' used?
Well, presumably hedging, futures and insurance markets can be used to offset political risks.
I love your postings when I can make sense of them. This one is so well encrypted I can't.
Everyone should know a bit about the securities markets -- an educated individual owes it to themselves to understand them. Perry