The Devil’s Derivatives: The Untold Story of the Slick Traders and Hapless Regulators Who Almost Blew Up Wall Street . . . and Are Ready to Do It Again<\/i><\/b> \u2013 it follows Nicholas first book, and in this book he has a much better ability to articulate the significant of financial technology in lay terms.\u00a0 For example, derivates are essentially loan mechanisms.\u00a0 As new loan mechanisms, they initially competed with the old style of actuarial loans, e.g., mortgages, bonds, etc.\u00a0 He also discusses LTCM in hind sight \u2013 that they were so big that they were the derivatives market.\u00a0 Thus, there performance could not be derived from past historical data (since that data did not include their influence).\u00a0 Moreover, as the market started to learn their techniques (become efficient), it actually started to guess LTCM\u2019s moves and arbitrage them!<\/p>\n","protected":false},"excerpt":{"rendered":"
The Devil’s Derivatives: The Untold Story of the Slick Traders and Hapless Regulators Who Almost Blew Up Wall Street . . . and Are Ready to Do It Again \u2013 it follows Nicholas first book, and in this book he has a much better ability to articulate the significant of financial technology in lay terms.\u00a0 … Continue reading The Devil’s Derivatives<\/span>