IDEAS home Printed from https://ideas.repec.org/a/ibf/gjbres/v6y2012i4p85-95.html
   My bibliography  Save this article

Do You Know Where Your Derivatives Are?

Author

Listed:
  • Ann Galligan Kelley

Abstract

This paper is designed to assist individuals and organizations in understanding the role and risks of derivatives in two specific areas -- debt management and investing. The various risks associated with derivatives are discussed in this article. Similar to collateralized debt obligations (CDOs) and CDOs squared, derivatives also have the potential to be the next financial engineering bubble to burst. The SEC is concerned that investors do not understand the risks with more complex ETFs and abbreviated disclosures. Institutions, including Harvard University, have already lost millions on interest rate swaps. Individuals and organizations should take the time to educate themselves as to the serious potential risks involved with these instruments.

Suggested Citation

  • Ann Galligan Kelley, 2012. "Do You Know Where Your Derivatives Are?," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(4), pages 85-95.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:4:p:85-95
    as

    Download full text from publisher

    File URL: http://www.theibfr2.com/RePEc/ibf/gjbres/gjbr-v6n4-2012/GJBR-V6N4-2012-8.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Derivatives; Exchange-traded Funds; Leveraged; Futures Contracts; Counterparty Risk; Tracking Errors; Lack of Transparency; Swaps; Counter Party Risk;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibf:gjbres:v:6:y:2012:i:4:p:85-95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mercedes Jalbert (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.