Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (3196)	1/2/2002 3:24:43 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 3536

Hawk, The problem is not the derivatives, but the strength or weakness of the counterparties. Though this is also true for loans, a lot more research of the borrowers credit quality is performed for a loan. With financial service co. counterparties located in countries which require little in the way of financial disclosure, you produce much more risk of a domino theory collapse. Barings caused a lot of problems and it was small. Reinsurance is much the same game, but, once again, the big reinsurers are pretty much a known commodity. I doubt if all the counterparties for bank derivatives are that well scrutinized.