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The Eurozone Sovereign Debt Crisis and a Potential OTC Interest Rate Derivatives Crisis

THE EUROZONE SOVEREIGN DEBT CRISIS AND A POTENTIAL OTC INTEREST RATE DERIVATIVES CRISIS Summary After considering the alternative scenarios of Grexit, debt renegotiation, transferring of debt, a deflationary spiral and so on, it is concluded that this will either result (ceteris paribus) in an increase in sovereign debt yields or a decrease in the volume […]

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Is The 505 Trillion Dollar Interest Rate Derivatives Bubble In Imminent Jeopardy?

Is The 505 Trillion Dollar Interest Rate Derivatives Bubble In Imminent Jeopardy? All over the planet, large banks are massively overexposed to derivatives contracts.  Interest rate derivatives account for the biggest chunk of these derivatives contracts.  According to the Bank for International Settlements, the notional value of all interest rate derivatives contracts outstanding around the globe […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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