OZ Banks + Derivatives

Discussion in 'Markets & Economies' started by Old Codger, Jun 24, 2013.

  1. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,782
    Likes Received:
    5
    Trophy Points:
    38
    Old Codger, Jun 24, 2013
    #1
  2. trew

    trew Active Member Silver Stacker

    Joined:
    Aug 24, 2011
    Messages:
    3,653
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    Melbern
    Don't understand much of it but one part states most of the bank's FX derivatives are to hedge their own overseas borrowings.


    Potential SHTF scenario is a real estate crash, banks see defaults on loans go up and then their overseas borrowings come up for rollover in a few years time ??
     
    trew, Jun 24, 2013
    #2
  3. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

    Joined:
    Feb 26, 2010
    Messages:
    8,809
    Likes Received:
    72
    Trophy Points:
    48
    Location:
    Gone Fishin'
    Clawhammer, Jun 24, 2013
    #3
  4. errol43

    errol43 New Member Silver Stacker

    Joined:
    Apr 13, 2010
    Messages:
    5,993
    Likes Received:
    15
    Trophy Points:
    3
    Location:
    Bundaberg
    OC..When i mentioned derivatives some months ago, I was under the impression that as you have been in the banking industry that there was nothing to worry about. Have you shifted your position. :) Please don't take this comment as me been a smart arse as I always enjoy your input into banking related posts. :) [youtube]http://www.youtube.com/watch?v=q6_6eEZkCUc[/youtube]

    I still think that derivatives will bring many corporations and countries to their knees.

    I have posted this video clip from youtube which is one of many on the subject..


    Errol43
     
    errol43, Jun 24, 2013
    #4
  5. Old Codger

    Old Codger Active Member Silver Stacker

    Joined:
    May 13, 2011
    Messages:
    4,782
    Likes Received:
    5
    Trophy Points:
    38
    Errol,


    I will watch the delightful young RT lady later.

    Up to my retirement I had never heard the term 'Derivatives'. I am near to certain they did not exist.

    From what i can see and read, the RBA does not seem all that concerned about them, but the figures i read ring a loud bell with me. I can see a domino effect and if one big bank goes bad, it will take the lot with them.

    OC
     
    Old Codger, Jun 24, 2013
    #5

Share This Page