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if this is an individual than fine, but if it's a derivative wrapping up a bunch of opaque "assets", purchased by a fund that manages say retirement savings for
by skeeter2020 4y ago
if this is an individual than fine, but if it's a derivative wrapping up a bunch of opaque "assets", purchased by a fund that manages say retirement savings for mandatory investors like a pension, there is a huge risk. It's like if every teacher was required to finance a sub-prime mortgage.
- junofan 4y agoThey have risk management people though. If those people aren’t doing their jobs, the fund has bigger problems. There are much larger and less hypothetical issues with public pensions around risk.
- edgyquant 4y ago> There are much larger and less hypothetical issues with public pensions around risk. Such as?