The vagaries of one-off pricing
EDITOR'S LETTER
The accurate pricing of derivative instruments has emerged as one of the greatest challenges facing buy-side institutions over the past 12 to 18 months. This is due in no small part to the proliferation of buy-side firms looking to trade increasingly complex instruments in an industry moving away from the poorly performing traditional asset classes to those offering more potential alpha. What has also emerged over this timeframe is the clear correlation between highly structured products – many
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