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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?


To: Henry Volquardsen who wrote (592)10/23/1998 8:49:00 AM
From: Tundra  Read Replies (1) | Respond to of 2794
 
Herny,

I agree. You are much more familiar with the nature of the instruments; so let me ask you a question. I assume that at least a portion if not a great deal of derivative action is contingent to some degree. Perhaps an exogenous event such as currency levels hitting x level before exposure is actually incurred. Would you agree?; or am I off base?

In any event, if true, it would seem to make how they deal with the bank quite interesting. For example, selling off such exposure to another perhaps troubled Japanese entity would not give me a great deal of comfort if I was the contingent beneficiary of such a derivative.

Sorry, if my use of the language in this arena is perhaps inaccurate. But I feel comfortable you will understand my basic meaning

My background is in the credit arena, but at less esoteric levels.

Regards,

Tundra