Design of Master Agreements for OTC Derivatives is popular PDF and ePub book, written by Dietmar Franzen in 2011-09-30, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Design of Master Agreements for OTC Derivatives can be Read Online from any device for your convenience.
Design of Master Agreements for OTC Derivatives Book PDF Summary
I first came across the issue of derivatives documentation when writing my diploma thesis on measuring the credit risk ofOTC derivatives while I was an economics student at the University of Bonn. Despite the fact that security design has been an area of research in economics for many years and despite the widespread use of derivatives documentation in financial practice, the task of designing contracts for derivatives transactions has not been dealt with in financial theory. The one thing that aroused my curiosity was that two parties with usually opposing interests, namely banking supervisors and the banking industry's lobby, unanimously endorse the use ofcertain provisions in standardized contracts called master agreements. Do these provisions increase the ex ante efficiency of contracts for all parties involved? I actually began my research expecting to find support for the widely held beliefs about the efficiency or inefficiency of certain provisions and was sur prised to obtain results that contradicted the conventional wisdom. I would strongly advise against using these results in any political debate on deriva tives documentation. They were obtained within a highly stylized model with some restrictive assumptions. This work should rather be seen as an attempt to formalize the discussion on derivatives documentation and to challenge the notion that certain provisions are generally ex ante efficient. It is also an invitation to all those advocating the use of certain provisions in master agreements to formalize their arguments and to explain the economic ratio nale behind these provisions.
Detail Book of Design of Master Agreements for OTC Derivatives PDF
- Author : Dietmar Franzen
- Release : 30 September 2011
- Publisher : Springer
- ISBN : 3642569331
- Genre : Business & Economics
- Total Page : 184 pages
- Language : English
- PDF File Size : 19,9 Mb
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