Tail event: Difference between revisions

Tail event (view source)

299 bytes added , 8 January

no edit summary

83,580

edits

@@ Line 1: / Line 1: @@
-{{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=====
 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”.