| 23.08.2007 Other Voices: Financial engineering causing widespread collateral damage, FT comment: Financial innovation itself is the problem, and how to deal with it, Fiscal, not monetary policies: Pimco`s Gross urges White House, not Fed to bail out homeowners, Gross sees time near for bargain-hunting in credit |
| From Wouter B. ten Brinke, CFA, Theta Capital: How can we witness such violent moves in global credit markets while actual default rates are still at all-time lows and the global economy seems in pretty good shape? The answer is financial engineering. Collateral damage A critical driver of the recent sell-off has been liquidation of positions by leveraged investors of various types: hedge funds |
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