> What, if any, financial instruments developed since the 1970s > are actually new? > > Thanks > > Jayson Funke
Here is a short list: + Convertible bonds; + Exotic options such as knock-out options, barrier options, look-back options, Asian options and the list continues; + All mortgage-backed securities including the collateralized mortgage obligations (CMOs), kitchen-sink CMOs (CMOs backed by CMOs possibly backed by other CMOs so forth, also known as nuclear waste), so-called whole loans and the list continues; + All asset-back securities such as home equity loans, credit cards, mobile homes and the list continues; + All credit derivatives such as credit default swaps, collateralized debt obligations, collateralized loan obligations and the list continues; + So on, so forth. If I were to list only those derivatives that I can cite from memory, it would have taken me about an hour or so to write all of them down. And there are many others I do not even know about such as various types of energy derivatives. However, all of these are qualitatively similar in the sense that their "values" are drived from the "values" of some other "assests", if this is what you mean by qualitative similarity. Best, Sabri __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com
