Word: morgans
(lookup in dictionary)
(lookup stats)
Dates: during 1990-1999
Sort By: most recent first
(reverse)
...bonds down here in the underlying protect himself or herself if more of these shenanigans lead to a general calamity? One way is to avoid owning shares in companies that are the biggest players in derivatives. This would include several large banks, such as Chemical, Bankers Trust, Citicorp, J.P. Morgan and Chase Manhattan. Lately the banks have reported excellent earnings, helped along by a recent winning streak. But what happens if the banks get on a losing streak...
...derivatives balloon. Its growth has prompted some Wall Street sages to warn that many of the newfangled instruments could be spinning far beyond anyone's control. The Jeremiahs include investment banker Felix Rohatyn, 65, one of Wall Street's elder statesmen, whose son Nicolas, 33, runs a J.P. Morgan department that uses derivatives to transact business in emerging markets in Asia, Eastern Europe and Latin America. "There's a whole different world in off-balance-sheet transactions that are potentially quite dangerous if people don't know what they're doing and a chain of financial commitments breaks down," says...
Investors could purchase these contracts directly from such dealers as Merrill Lynch or J.P. Morgan, or the dealers could arrange for swaps between investors; either way, the dealer got a fee. Such transactions could take place anywhere. A Texas manufacturer with a $1 million fixed-rate loan who suspected that interest rates would soon fall could swap the loan with a Michigan company that had taken out a floating-rate note but was worried that rates were headed higher. The Texas firm would be the loser if rates did rise, since after the swap it would hold the floating-rate...
...also spending lavishly to provide its whiz kids with all the tools they can use to build ever more elaborate toys. The arrival of powerful computer workstations in the late 1980s gave the quants the number-crunching capacity they needed to bring forth their brainchildren. Now Goldman Sachs, J.P. Morgan and Morgan Stanley each spend anywhere from $800 million to $1.2 billion a year to hone their derivatives operations. The money goes for the computers and software it takes to design and monitor derivatives contracts, and for the salaries of the quants who pilot the equipment...
EDITORIAL FINANCE: Genevieve Christy (Manager); Carl Harmon, Morgan Krug (Domestic); Camille Sanabria, Aston Wright (News Service); Linda D. Vartoogian, Wayne Chun (Pictures...