Derivatives The Wild Beast of Finance: A Path to Effective Globalisation? - Softcover

Steinherr, Alfred

Softcover

ISBN 10: 047182240X ISBN 13: 9780471822400

Publisher: Wiley, 2000

Synopsis

When it first published in spring 1998, Derivatives: The Wild Beast of Finance made bold predictions and recommendations for the future of global finance. Alfred Steinherr explained that, without effective risk management, the incredible explosion in the use and value of derivatives could destabilise the entire global market structure. His views and suggested solutions were not universally accepted. And then, suddenly, in the space of a few months many of the inherent dangers he set out became reality - the Asian crisis took a vicious toll on the tiger economies and the Russian bear collapsed, heralding the ultimate destruction of the most celebrated hedge fund of recent years - Long-Term Capital Management. The knock-on effect of the LTCM collapse was so severe that the US Fed was forced to intervene. In this extensively revised paperback edition, Alfred Steinherr brings the story up to date and uses the opportunity to analyse and reflect on the effectiveness of the solutions he offered first time around. Much of the more technical material from the original edition has been removed to produce a highly readable and thought-provoking explanation of the origins and benefits of global finance, while once again assessing the dangers - imagined and real - that still lurk within this fascinating world. Time alone will tell how much heed is taken this time. "Alfred Steinherr has written a fascinating book that examines the role derivatives play in developing the world economy today, and the part they will have in shaping the financial markets of tomorrow.. For practitioners, officials and students alike, Steinherr has provided a lively and informative canter through the world of derivatives." Investors Digest ". a welcome departure from most texts on the topic. Books on derivatives seem either to be ludicrously sensationalist or steeped in higher level mathematics. In contrast, this work by Alfred Steinherr is both accessible and rigorous." Investment Adviser ". will give a useful insight into the relationship between the derivatives market and the wider financial markets to the general reader.. a highly informative read for those who really want to get to grips with what the derivatives markets are all about." The Investor "Steinherr brings a lucid approach to a complex topic with this book [and] has produced a comprehensive overview which manages to combine a readable style with considerable detail and thought-provoking ideas for the future." European Fund Manager

About this title

From the Publisher

In their award-winning essay The Wild Beast of Derivatives, the authors made an important contribution to the debate on the regulatory implications of derivatives. In this groundbreaking work they expand on their original ideas, placing derivatives in a wider historical and economic context and reflect on the dramatic implications these powerful instruments may have for the conduct of monetary policy and the future of world banking.

From the Inside Flap

"One does not have to agree with all the views or proposals in this book . to enjoy the rigour and clear treatment of a subject, which is of major importance from both a market and a regulatory perspective. Both practitioners and laymen will surely learn from this book and get a solid understanding of the subject." From the Foreword by Tommaso Padoa-Schioppa, President, Consob, and former Chairman of the Basle Committee on Banking Supervision Derived from the award-winning essay The Wild Beast of Derivatives (Gold Medal at the Amex Bank Review Awards 1994), Derivatives: The Wild Beast of Finance is a fascinating examination of the role derivatives have played in developing the world economy today and the part they will play in shaping the financial markets of tomorrow. Derivatives trading has exploded over the past 20 years as a method of effective risk-management tactics and in no area more than in the increasingly sophisticated custom made over-the-counter products. In tandem with this explosion have been the increasingly loud concerns raised over the potential dangers of derivatives - a financial crash in one market could have a catastrophic domino effect across the globe. In addressing these concerns, the author has focused on a number of fundamental questions:
* From where do derivatives originate?
* What are the advantages of the US financial system that have made it the model for the rest of the world?
* What degree of responsibility for recent financial crises must be placed at the door of derivatives?
* What social and economic benefits do derivatives deliver? Does effective risk management allow increased entrepreneurial skills and investment?
* Do the financial markets require regulation? If so, from where should the regulation be derived and how should it be managed?
* What role will derivatives play in the future of world banking and the world's economies?
Throughout the book the author combines technical illustrations with an accessible narrative incorporating many case studies and fictional "stories", transforming Derivatives: The Wild Beast of Finance into an insightful, forthright and entertaining explanation of derivatives.

About this edition

• Publisher: Wiley
• Publication date: 2000
• ISBN 10: 047182240X
• ISBN 13: 9780471822400
• Binding: Paperback
• Edition number: 1
• Number of pages: 328