26. 09. 2024
The Wealth Of Investors
Reforming the Global Financial System: Addressing the Risks of Complex Financial Contracts
We discuss the shortcomings of financial contracts that were highlighted by the global financial crisis, including poor management, lack of transparency, and the complex real risks behind them. The risks of these contracts spreading across financial systems were evident in...
25. 09. 2024
The Wealth Of Investors
The Massive U.S. Financial Derivatives Market in 2011
We discuss the size and composition of the U.S. financial derivatives market in 2011, which reached $248 trillion, 17 times the GDP. The majority of these derivatives were interest rate contracts, while futures, forwards, swaps, options, and credit derivatives made...
24. 09. 2024
The Wealth Of Investors
The Explosive Growth of the US Derivatives Market
We discuss the rapid growth of the financial derivatives market in the United States, where the value of derivatives jumped from $20 trillion in 1995 to $248 trillion by 2011, which was about 17 times the value of the US...
23. 09. 2024
The Wealth Of Investors
The Rapid Growth of Financial Derivatives in the US Banking Sector
We discuss the rapid growth of financial derivatives, which continued even during the global financial crisis, with the majority of these transactions occurring among a small number of major US banks and their affiliated companies.
22. 09. 2024
The Wealth Of Investors
The Risks and Rewards of the Massive Market Derivatives Industry
We discuss how market derivatives help institutions reduce risk and protect against market volatility, allowing for more efficient operations. These contracts are mostly traded privately, with an estimated total value of 700 trillion globally, far exceeding the global GDP. However,...
19. 09. 2024
The Wealth Of Investors
Managing Financial Risks with Derivatives in the Global Financial Landscape
We discuss the importance of the global financial landscape for financial institutions like banks and insurance companies, and how they use financial derivatives to manage risks associated with interest rate fluctuations, exchange rate fluctuations, and credit risk in the financial...