Category Archives: Hedging

Derivatives Regulation

Read the transcript of William Black’s recent testimony on derivatives before the Committee on Agriculture, Nutrition & Forestry of the United Slates Senate:¬†Prepared Testimony of William K. Black Associate Professor of …

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Risk Premiums & Hedging

If you create long-term risky loans without adding a risk premium, you are bound to fail.¬† The risk premium is the first line of defense (micro hedging), and capital reserves are the last line of defense (macro hedging).¬† Banks underestimated … Continue reading

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