It’s World Derivatives Day It’s the biggest day of the year – World Derivatives Day! The day that we have all been waiting for is today and we want to make sure no one misses it. For those of you who may be new to this most famous of hedging holidays, let us give you a brief history. Years ago, we at Chatham decided to dedicate one day a year to celebrating the mighty derivative and its use in financial risk management. For us, the best part of celebrating this day is the calls that come in from you, and the chance to wish each other a “Happy World Derivatives Day”. But it doesn’t end with best wishes; there are also gifts and prizes for those who call or tweet #ChathamWDD to @ChathamFin. Still have questions? Let’s see if we…

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It’s (almost) World Derivatives Day – Save the Date It’s only the day after Memorial Day but we are already getting excited, no not for summer, or the beach or even vacation. We’re excited since it is less than two weeks till the biggest day of the year – World Derivatives Day. The day that we have all been waiting for falls on Monday, June 13th this year and we want to make sure no one misses it. For those of you who may be new to this most famous of hedging holidays, let us give you a brief history. Years ago, we at Chatham decided to dedicate one day a year to celebrating the mighty derivative and its use in financial risk management. For us, the best part of celebrating this day is the calls that come in from…

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What if we told you that there was a derivatives contract so perfect in concept and execution that the non-financial counterparty had huge potential upside without any downside risk? What if we further told you that everyone – all parties to the derivative, related institutions, and society as a whole – could be made holistically better off from the transaction? Wouldn’t that be the best derivative ever, worthy of special acclaim on World Derivatives Day? “Come, come,” you might say, “that’s too good to be true. This World Derivatives Day spirit has gone to your head, and you’ve forgotten core principles of economics like greed, moral hazard, and zero sum games. No derivative could benefit all stakeholders this way … right?” Let us begin by telling you about juvenile recidivism rates in Massachusetts. Every year in the Commonwealth, 4000 high-risk…

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