The entire contents of our ledger at a given time. These assets are revalued using volatility that overflows the standard value-at-risk model (the standard VaR model).
How much volatility? On the basis of the volatility of historical data, it is enlarged by 10%-15%. The expected loss will exceed the company's current market value.
These are historical volatility index limits upon which our entire trading model relies, operating leverage is so high that once volatility exceeds these limits, asset values plummet.
Why can I sit in this position now? My job is to predict the melody of the music in the coming week, month and year
The mortgage-backed securities (MBS) are packaged and sold, and assets of different risk levels are packaged and sold. It takes one month for the company to rate the product risk, and the asset is held for a long time. The underlying asset is a mortgage loan, and the financial leverage is too high, even exceeding the transaction limit, which makes the risk early warning mechanism ineffective.
Mortgage valuations drop by 25%, and the losses will be higher than the company's market value.
Quick shots, good brains, and cheating.
Selling worthless assets to others and losing the counterparty
A bridge saved people 1531 years.
Trader, successfully ruined his job.
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