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


To: Henry Volquardsen who wrote (836)3/25/1999 11:19:00 AM
From: accountclosed  Read Replies (1) | Respond to of 2794
 
The real question becomes not what is the price risk on the portfolio but what is the credit exposure.


Are you talking about credit risk on underwriting or counterparty risk in the derivatives portfolio? I am thinking the latter. As a follow up...Does the spread (no pun intended) of derivatives extend the "too big to fail" principle to almost all derivative playing banks and institutions (witness LTCM)?