Date: August 26th, 2008

The unequal struggle: Part 1, risk and reward

26 August, 2008 (08:27) | Capital markets, Finance, Policy, Subprime, Theory | 1 comment

                              “A short option position with unlimited downside and limited upside”
– Anonymous risk manager, describing the career implications of rejecting a deal
 
A few weeks back, The Economist published a truly remarkable confession by a (prudently) anonymous risk manager from a major financial institution, explaining in candid detail precisely how and why the risk-management function is structurally [...]