Amazing op-ed from resigning Goldman Sachs derivatives director Greg Smith, discussing how the firm’s culture became more about taking advantage of clients as opposed to serving their best interests. Unlike derivatives desks across the spectrum, we have no “axes” to grind here, we don’t hunt elephants, and we don’t advise Read more…
Interesting articles about the challenges of over-the-counter (OTC) derivatives documentation, and how the ISDA ‘standard’ language (HuffPo) used in some swaps is designed to favor one party. Also, another lesson learned from Greece: don’t use interest rate swaps and/or cross currency swaps to alter debt-to GDP ratios. (Bloomberg) Another few Read more…
Op-ed from Barbara Roper, Consumer Federation of America, talking about how the CFTC’s final rules for swap dealer business conduct were softened to benefit swap dealers. Cardea Partners are independent representatives for anyone, public or private, entering into swaps and options contracts. And yes, even though such a representative is not Read more…
Interesting article from Bloomberg about the history and plight of LIBOR and the complaints that market participants have levied against the indices that set values for some $360 trillion face of financial assets around the world. Primary concern to me is the fact that perceived credit quality is tied to each bank’s offered rate. Should bank Read more…
An example of why we and other swap advisors are available in the marketplace to help clients manage interest rate exposures in a cost-effective manner. (NY Times)