9789814663243-9814663247-Global Derivative Debacles: From Theory to Malpractice (2nd Edition)

Global Derivative Debacles: From Theory to Malpractice (2nd Edition)

ISBN-13: 9789814663243
ISBN-10: 9814663247
Edition: 2
Author: Jacque, Laurent L
Publication date: 2015
Publisher: WSPC
Format: Hardcover 368 pages
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Book details

ISBN-13: 9789814663243
ISBN-10: 9814663247
Edition: 2
Author: Jacque, Laurent L
Publication date: 2015
Publisher: WSPC
Format: Hardcover 368 pages

Summary

Acknowledged authors Jacque, Laurent L wrote Global Derivative Debacles: From Theory to Malpractice (2nd Edition) comprising 368 pages back in 2015. Textbook and eTextbook are published under ISBN 9814663247 and 9789814663243. Since then Global Derivative Debacles: From Theory to Malpractice (2nd Edition) textbook was available to sell back to BooksRun online for the top buyback price or rent at the marketplace.

Description

This book analyzes in depth all major derivatives debacles of the last half century including the multi-billion losses and/or bankruptcy of Metallgesellschaft (1994), Barings Bank (1995), Long Term Capital Management (1998), Amaranth (2006), Société Générale (2008) , AIG (2008) and JP Morgan-Chase (2012). It unlocks the secrets of derivatives by telling the stories of institutions which played in the derivative market and lost big. For some of these unfortunate organizations it was daring but flawed financial engineering which brought them havoc. For others it was unbridled speculation perpetrated by rogue traders whose unchecked fraud brought their house down.

Should derivatives be feared "as financial weapons of mass destruction" or hailed as financial innovations which through efficient risk transfer are truly adding to the Wealth of Nations? By presenting a factual analysis of how the malpractice of derivatives played havoc with derivative end-user and dealer institutions, a case is made for vigilance not only to market and counter-party risk but also operational risk in their use for risk management and proprietary trading. Clear and recurring lessons across the different stories in this volume call not only for a tighter but also "smarter" control system of derivatives trading and should be of immediate interest to financial managers, bankers, traders, auditors and regulators who are directly or indirectly exposed to financial derivatives.

The book groups cases by derivative category, starting with the simplest and building up to the most complex — namely, Forwards, Futures, Options and Swaps in that order, with applications in commodities, foreign exchange, stock indices and interest rates. Each chapter deals with one derivative debacle, providing a rigorous and comprehensive but non-technical elucidation of what happened.

What is new in the second edition? A new chapter on JP Morgan-Chase's London Whale, an in-depth discussion of credit-default swaps, and an update of the revamped regulatory framework with Basel 2.5 and Basel III against the backdrop of the Euro crisis, along with a revised and expanded discussion of the AIG debacle.

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