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"synthetic asset" and "derivative" sound like Venn-diagram that's just a circle.
by r00fus 4y ago
"synthetic asset" and "derivative" sound like Venn-diagram that's just a circle.
- subroutine 4y agoReminds me of the scene in The Big Short where Baum learns about synthetic CDOs. https://www.youtube.com/watch?v=A25EUhZGBws&t=111s https://www.youtube.com/watch?v=A25EUhZGBws&t=111s
- dogma1138 4y agoSynthetic in finance just means a combination of two or more products/calls etc. So if you make a financial product that encompasses two different derivatives it would be a synthetic derivative. It’s mostly a meaningless term as far as regulation goes.