Remember the hullabaloo about securities derivatives, such as interest rate swaps and credit default swaps? And their supposed connection with subprime mortgages and collateralized debt obligations? With their alleged role in the 2008/2009 financial meltdown?
Politicians railed against CDS (credit default swaps), that they caused the financial meltdown in the mortgage market.. But there was a much larger market in interest rate swaps, and there was no problem with fixed income assets.
And, there was an even larger market In foreign exchange swaps, than in CDS, and there was no problem in the currency markets.(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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