Complex Credit Derivatives Should Give Us Great Cause For Concern
We have not learnt the lessons of previous derivatives disasters
As the market in credit related products, including complex credit derivatives, continues to expand; there are some import lessons from previous mistakes which do not seem to have been taken on board.
If some of the failures of the past are repeated in this context, then the consequences could be serious and widespread, the cost could dwarf some of the high profile losses that were suffered by investment banks in the past.