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You are here: Home > Capital Markets Key Concepts

Capital Markets Key Concepts

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Viewpoint: Ricardo Rebonato

The failure of quantitative financial models has been cited as partly to blame for the mispricing of risk in the 2008/9 crash. Yet models, by their nature, make "imperfect" assumptions.
Viewpoint: James Montier

A stronger awareness of history and basic psychology could help investors spot the formation of market bubbles, be they the dot.com crash or the latest sub-prime mortgage bubble.
Viewpoint: Bill Hambrecht

What the markets need is not more complex regulation but a restoration of fairness, transparency, and trust. Transparent pricing would make derivatives much less damaging.
Viewpoint: Michael J. Panzner

The financial meltdown of 2008 was a result of hubris, a belief that nothing could go wrong, and the recklessness that ensued. Some of the biggest miscalculations were on Wall Street.
Viewpoint: Paul Wilmott

The problem with derivatives, quants, and risk management today is that trades of all types tend to be too highly correlated one with another. Spreading risk is fundamental.

QFINANCE Refresher

Key Concepts

Key Concepts provide you with definitions of buzzwords appearing in the media to ensure that you are up to speed with the current finance conversation. Produced in snapshot, glossary form, Key Concepts direct you to additional material to increase your knowledge and satisfy your interest.

Credit Crunch
The term “credit crunch” was once the preserve of economists and financial gurus. But it has been used so widely since mid-2007 that it was added to the 11th edition of the Concise Oxford English Dictionary (OED), which defines credit crunch as “a severe shortage of money or credit.” It is a financial crisis caused by financial institutions being too risk-averse to lend to businesses, consumers, or each other.The current crunch was sparked by...

Once you decide to work for yourself, you never go back to work for somebody else.
Sir Alan, Baron Sugar (1947 – )
British entrepreneur, founder of Amstrad electronics company
Source: The Apprentice (UK)

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