Satyajit Das, Columnist

WMD Old and New Primed for Next Financial Crisis

We’re storing up the instruments of a market meltdown.

May 8, 2018 at 9:44 PM EDT

By Satyajit Das

Satyajit Das is a former banker and the author, most recently, of "A Banquet of Consequences."

Light bulbs and cogs inside of head of man adjusting dollar sign with wrench — Photographer: Jonathan McHugh/Getty Images

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Innovative financial instruments contribute to every financial crisis.

Portfolio insurance, the practice of using dynamic hedging to limit losses, played a big part in the 1987 crash. High-yield and emerging-market debt, leveraged private-equity transactions, and hedge funds have all had central roles in upheavals, as have securitization, including CDOs, and various derivatives.

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE