A bright graduate joins an investment bank, but not in the glamorous, fast-moving – and ultimately profitable - trading role that he wanted. Rather, he is put into the "middle office," managing the IT systems that keep the trading desks running. Eventually, though, he is given a break, joining the bank's "delta one" trading desk, playing arbitrage between cash equities and equity derivatives.
One of the culprits blamed for the financial chaos of 2008-2009, were collateralized debt obligations. Like any derivative, the value of a CDO is based on an underlying asset. Khan of the Khan Academy explains.
Buying a home is usually the biggest individual investment people make in their lifetime and more often than not, a mortgage is involved. With such large sums of money involved in the mortgage market, financial firms profit by using a type financial instrument called mortgage-backed securities, or MBS.
Japan is monitoring the yen, and the Swiss are fed up with the franc - it's time for your FX Fix.
The New York Times considers the possibility that a firm or group of firms insured billions of dollars of European debt through derivatives.
More Greek drama: rapid price changes in a corner of the currency markets suggest banks are worried about an interbank lending freeze, absent a rescue plan for Greece.
The Securities and Exchange Commission is investigating Merrill Lynch’s sale of a complex mortgage-related security it created for Magnetar, an Illinois hedge fund, and the collateral manager involved in the deal. The FT reports.
CNBC's Jane Wells and Scott Shellady, ICAP US with a look at higher corn futures after the AG department cut its outlook. The Fast Money traders also weigh in on their trades.
Are value stocks a good investment strategy in a choppy market? Insight with Howard Lutnick, BGC Partners CEO.
TD Ameritrade client trades were down 22% in May from a year ago, a sign investor sentiment is changing, Chief Executive Fredric Tomcyzk told CNBC Thursday.
Derivatives traders in the United States will find out soon how a missed deadline for new rules will be handled, a senior U.S. regulator said on Tuesday.
Mark Mobius, Templeton Emerging Markets Group shares his strategy for overseas investments, with CNBC's David Faber.
It looks like Senators Charles Schumer and Kirsten Gillibrand have come back into the Wall Street fold.
Deal-making by both the London Stock Exchange (LSE) and Nasdaq-OMX hit snags this week on concerns over sovereignty and competition, leaving room for speculation that Nasdaq will now bid for the LSE.
Wall Street banks are warning they may have to cede much of the European derivatives market to the likes of Deutsche Bank and Barclays Capital if US regulators follow through on proposals to apply new regulations extraterritorially, the FT reports.
Conflicts of interest, excessive risk-taking and failures of government oversight triggered the financial crisis and helped push the country into the deepest recession since the Great Depression, concludes a new report by the U.S. Senate.
The European Central Bank decides to keep interest rates at the low, low rate of 1%, but hints that could change as early as April. Meanwhile, in China, a central bank governor predicts the yuan will become a reserve currency. Your daily FX fix, right here.
Top European Union officials will on Wednesday call for curbs on derivatives markets and greater use of trade policy to reduce volatility in commodity prices and improve the bloc’s access to key raw materials.
Previously, when I gushed about the page before, the section only listed the CDS prices for the PIIGS. Now we've added a whole bunch more.
Another big snowstorm is predicted for the Northeast this week, so can you profit from it? The answer is yes, according to Jeff Hodgson, president of Chicago Weather Brokerage, part of the CME Group.