Gustavo Ballvé on March 2nd, 2012
Corporate Governance, Food for thought, Home, Mental models, Portfolio Management, Risk management

Two Dealbook articles to read over the weekend, about sources of risk that don’t get enough attention: the quality and reliability of financial instruments and advisors. The first one regards the Greek debt restructuring and what it means for CDS – a subject we’ve explored here and that can really test the waters regarding the reliability of CDSs as a hedge instrument. The other regards the ages-old conflicts of interest in LBOs, hostile takeovers and the such – transactions in which the safest route is the one that assumes that all advisors are biased and conflicted (by the way, here’s another interesting article by The Deal Professor regarding Pringles, Kellogg and Diamond Foods).

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