Thursday, September 25, 2008


Here is one survey of explanations for interest rate swaps.  The explanations mostly seem lame and question-begging to me.  Here is another survey of potential explanations of interest rate swaps.  Good luck and I hope you have JSTOR access.  $

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Blogger jonhusband said...

Whew .. that first one was tough going, but I think I got the gist.

Seems to me that a "market" in risk allowed players to make money out of thin air.

As with recent events, when the actual risk against which they were playing kicked in everyone looked at each other and said .... "hey, this ain't fun. I'm taking my cards and going home .. oh, and by the way, my (neighbours / parents / clients) gave me the money I put in the pot earlier in the evening and lost. I need it back, not to give them, but so that I don't have to sell my vacation home ".

Or something like that.

I also chuckled when I saw the URL (sfu,edu), which made me remember chuckling to myself 5 or 6 years ago when the SFU business school (up here in the Great White North) created this goody MBA in Global Risk Management.

9/26/2008 11:34 AM  

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