THE END OF THE DERIVATIVES DREAM

RBI’s conservative approach to anything called financial innovation is known. But the way its ED VK Sharma blew into pieces the arguments for various instruments and the market is not what the experts make it out to be at Finnoviti 2012. He picked holes in every one of the markets in India. “It would be no exaggeration to say that these hugely negative spreads of IRS to G-Secs are as counter-intuitive, quirky, anomalous, warped and preposterous as a father’s negative age spread to his son’s is!” 

ET