risk-manager-airs-creditcrunch-fears

Risk manager airs credit-crunch fears

The head of credit risk at an investment bank argues financial institutions in Asia will not be immune to the subprime fallout.

By Simon Osborne

August 16, 2007

The following represents only a single view, and not that of this publication. It is the view of the head of credit risk at an investment bank in Hong Kong û one who believes his senior executives donÆt want to take heed of him, possibly because their bank is exposed to the current credit crunch. This account has been edited.

My evaluation of the subprime mess starts with the premise of the Chaos Theory, which relates to the interconnectedness of everything. That interconnectedness is illustrated by a famous analogy, that of a butterfly flapping its wings in Florida ultimately causing a typhoon in China.

I am not sure if a local US problem caused by...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

#subprime