Monday, October 27, 2008

Energy Derivatives?

One Gulf Bank has run awry of "a derivatives" trade to the tune of $742 million.

Can we guess that this was oil futures related? Someone sell massive puts, on the view that oil was going ... sky high (pun intended)?

Currency? A little too much enthusiasm for the Euro?

Who knows .... somehow I doubt it is CDS.

Update: Someone else doesn't know how to hedge their book? (Shaking head)
Equity Deriv Losses At DeutcheBank

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