FRM二级考试公式表介绍：Financial Disaster！

FRM考试中有大量的计算题，因此对于FRM公式的掌握程度，对于备考是有很大帮助的！下文是对Financial Disaster的相关介绍！

Financial Disaster：

Barings: rogue trader, Nick Leeson, took speculative derivative positions (Nikkei 225 futures) in an

attempt to cover trading losses; Leeson had dual responsibilities of trading and supervising

settlement operations, allowing him to hide trading losses; lessons include separation of duties

and management oversight

Meltallgesellschaft: short-term futures contracts used to hedge long-term exposure in the

petroleum markets; stack-and-roll hedging strategy; marking to market on futures caused

huge cash flow problems.

Long-Term Capital Management: hedge fund that used relative value strategies with enormous

amounts of leverage; when Russia defaulted on its debt in 1998, the increase in yield spreads

caused huge losses and enormous cash flow problems from realizing marking to market

losses; lessons include lack of diversification, model risk, leverage, and funding and trading

liquidity risks.