Unfortunately, the volume of individual banks in this market had not been fixed and there was a continuous need for several major banks to participate in order to protect their own positions and to achieve stable profit margins. This would ultimately translate into a new and totally unforeseen problem.
Eventually, these large banks started to back-test their trading strategies with the assistance of various third party agencies. Their main focus was on getting the results that the agencies had, but they failed to realize that the agencies themselves have very poor underlying analysis.
They used their leads to perform actual hedging-by-back-testing on various parameters. Their history and past performance on the subject of hedging had not prepared them for the severe problems that they would face when it came to resolving any of the issues associated with the New York Agreement and other related derivatives.
To my knowledge, no one else has seen the entire scope of the problem with the news and media coverage and the MBA Assignment Help that I have received. However, I have an understanding of how many of you working in the new derivatives markets are having the same experiences.
When the recent crisis hit, the major problems that they faced were that they could not profitably hedge the most dangerous activities. These were high risk, high volatility activities and by default, they would be subject to the full force of the worst negative side-effects of their decisions.
When the Financial markets closed, they had a small group of employees that could perform all the functions at the same time as the others left their jobs. The consequences were some of the largest declines in the country’s economy since the Great Depression.
This situation has led me to seek MBA Assignment Help in the areas of the New York Agreement and other derivatives related markets. You will understand why I say that when I speak of the derivatives markets and models, if you look closely, you will see that a lot of work is done outside of the public markets.
Since there is a need for derivatives which can offer increased liquidity support, the first obvious thing to do is to trade them without having to interact with the largest institutions. However, this means using derivative models that provide back-testing results.
The second thing you need to do when it comes to derivatives markets and models is to track the news that they release on a regular basis and their overall performance. If they have done well, keep looking for explanations.
In a word, they will only give you current interest rates, so you will need to know their historical performance and compare it to what you have seen in the past. If the historical performance is worse than what they are showing now, do not accept the explanations until you have had the opportunity to conduct a back-test.
For the same reason, you also need to check out the news releases about the impact of the stock markets. There is a lot of information to be had in this area, including links to the source of the news.