In tonight's episode, part 3 of a 5 part series, we help listeners understand Complex Securities and Derivatives, their purpose, the markets they operate on, and how they played no part in the financial crisis.
Instruments such as Mortgage Backed Securities, Credit Default Swaps, Collateralized Debt Obligations often get a bad wrap, as if they are inherently evil or destructive.
The fact of the matter, like any financial instrument, is that these complex securities and derivative contracts are a ingenious innovation that help investors and financial institutions MITIGATE risk.
Further, during the financial crisis of 2008, these instruments helped to MINIMIZE the damage done by the Federal Government's Capital Manipulations of the past 2 decades and the Monetary Manipulation of the Federal Reserve Bank.
Without such innovative products to help manage risk, the crisis could have been much worse.
Tonight we help listeners get a handle on the concept of convertible debt, preferred stock, futures, options, mortgage backed securities, credit default swaps and collateralized debt obligations!
Don't miss it!