The risks in the derivatives markets are growing

The Wall Street Journal published an article on titled “Credit Derivatives And Their Risks Are On The Table” by Henny Sender.

In the article, Sender advised that the Fed was gathering the big Wall Street players to discuss the rising concerns about risk in what is known as the credit-derivatives markets.

Sender goes on to make the case that the clearing structure of the dealers and hedge funds is not keeping pace with the exploding growth in these complex financial instruments.

Confirmations of these trades are falling behind the growth of the trades and the paper is stacking up both at the dealers and the hedge funds. Continue reading The risks in the derivatives markets are growing