“But everybody is doing it.” Denver Board of Education and Synthetic Fixed Rate SwapsAugust 6, 2010 by: Joseph S. Fichera
As I noted in Friday’s (8/6/10) front page NY Times article attached, the Denver Board of Education was another issuer of a complex derivative deal who took on risks and wasn’t prepared for a downturn. Can risks be better known and managed? One help would be if the advisors weren’t also on the other side of the transaction. But equally important to remember is that, in the long run, the deals we don’t do for our clients are as important as the deals we do.