Tail event: Difference between revisions
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{{freeessay|isda|tail events|}}In the context of trading derivatives, things that (a) you didn't reasonably expect and that (b) bugger up your contract. | {{freeessay|isda|tail events|}}{{d|Tail Event||n|}} | ||
{{L1}}'''Statistics''': Of a range of possible independent events, one whose frequency is three or more standard deviations from the mean. An event with a low probability <li> | |||
'''Work life''': An unwanted outcome you didn’t expect and don’t think you should be blamed for. | |||
In the context of trading derivatives, things that (a) you didn't reasonably expect and that (b) bugger up your contract. | |||
=====Credit defaults===== | =====Credit defaults===== | ||
A swap being a private, bilateral affair, the most obvious category of tail events is “things which mean your counterparty cannot, or will not, or has not, performed its end of the deal”. | A swap being a private, bilateral affair, the most obvious category of tail events is “things which mean your counterparty cannot, or will not, or has not, performed its end of the deal”. |