This project contains information on Credit Default Swap, its global market, subprime crisis, the role of CDS in subprime crisis, effort taken to curt...
this project report explains about how the patenting activities work in India which are related to international trade and how many organizations granted for patents rights in india in various cate...
venture capital in indiaFull description
this project is based on the problems faced by women entrepreneurs in India...
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it concentrated on SHIVA CREDIT CO OPERATIVE SOCIETY
credit risk management in banksFull description
credit risk management in banksFull description
Descripción: defaul
Executive Summary, Introduction To Project (Synopsis), Objective Of The Study, Statement Of Problems, Limitation Of Project, Scope Of The Project, Research Design And Instruments, Conceptual…Full description
by jyoti bhadra,g l bajaj institute of management and research,greater noida.
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Project report on the study of impact of demonetization in India. This project is basically meant to acquire knowledge about the significance of cash and cash transaction in the individual’s…Full description
Project report on the study of impact of demonetization in India. This project is basically meant to acquire knowledge about the significance of cash and cash transaction in the individual’s…Full description
project of mba
Project by Praveen P. Mishall
Welingkar Institute
Derivatives massively leverage the debt in an economy, making it ever more difficult for the underlying real economy to service its debt obligations and curtailing real economic activity, which can cause a recession or even depression.
New innovations on financial derivatives are too complicated that even some financial managers are not sophisticated enough to use them.
OTC Derivatives growth: Derivatives market was already a very big in 1998, but it has exploded since then. The amounts outstanding of OTC derivatives since 1998 are broken down into their various types as shown below.
As can be seen from above figure the total OTC derivative market was almost $600 trillion. Thus, in 10 years it has gown 826%. Some of the subcategories have grown even more than simple average (of 826%) like, commodity contracts increased over 2000%, interest rate contracts (which make up the largest portion, 66% of OTC market) increased over 900% in last 10 years and CDS (Credit Default Swap) contracts increased over 905% in just three and half years yea rs (more about CDS is explained in later chapters).
Factors generally attributed as the major driving force behind growth of financial derivatives are: