Traders, Guns and Money, by Satyajit Das

Satyajit Das has done great work in making people aware of the practices of institutions regarding risk management. He highlights the never-ending fight between front-office and back-office, trader and geek, and how even the people involved with some of the exotic instruments are not completely aware of/ understand their positions/risks.

He also brings out the always-in-news derivatives and whether derivatives are weapons of mass destruction as stated by Warren Buffet or if they are truely very crucial to the normal functioning of markets as believed by Alan Geenspan.

Approach on VAR and derivatives at the end is also very helpful.

In short, Satyajit explains in the most clearer terms that how reliable are risk numbers and how these can be manipulated to make trades look more attractive to the world.


About Danish Kapur

Danish Kapur is a writer, commentator and actively follows the global financial markets.

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