HONGKONGDIR

HOMECompaniesDictionaryFAQs

Home » Dictionary » Bonds » derivatives time bomb

Derivatives Time Bomb

Definition
An expression sometimes attributed to Warren Buffet who described derivatives as "financial weapons of mass destruction" that harbor latent dangers for the institutions that use them. The unbridled and unregulated use of derivatives in highly leveraged hedge strategies has the potential of creating massive selloffs should prices move against the strategies.

Nearby Terms
Similar companies
Copyright © 2013 hongkongdir.com All Rights Reserved.
Provides public information about companies in the Hong Kong.