Indexed Archive

Information Theory, Physics, and Artificial Intelligence

Unsupervised 3D Feature Extraction and Edge Detection Algorithm

Applying My Model of AI to UCI Datasets

UPDATE: A New Model of Artificial Intelligence

A New Model of Artificial Intelligence

Fast Unsupervised 3-D Feature Extraction

Fast Unsupervised Image Categorization Algorithm

Fast Numerical Function Approximation

Predicting and Imitating Complex Data Using Information Theory

Note on the Riemann Zeta Function

On the Applications of Information Theory to Physics

Fast N-Dimensional Categorization Algorithm

A Simple Model of Non-Turing Equivalent Computation

Correlation, Computability, and the Complexity of Music

Using Information Theory to Create Categories with No Prior Information

Using Information Theory to Explain Color Bias

A Mathematical Theory of Partial Information

Using Information Theory to Explain Color Perception

Using Information Theory to Inform Belief: Information-Weighted Probabilities

Information Theory and Time-Dilation

Fast Image Categorization Algorithm

Using Information Theory to Process Images

Finance and Politics:

Globalization, Modern Slavery, and the Rise of the Far-Right

Understanding Custom OTC Derivatives

Asset Bubbles and Economic Activity

FT Interview With Mandelbrot

Naked CDS: Exposed

Understanding The OTC Derivatives Market

Understanding Obama’s Financial Overhaul

Could Government Intervention Help Markets Function Better

Rethinking Central CDS Counterparties

The Sorry State Of The Dismal Science

Credit Default Swaps and Control Rights, Redux

Credit Default Swaps and Control Rights

The Regulatory Pendulum And Electoral Guillatine

How To Speak “Structured Finance”

Surely Schadenfreude

The Fallacy Of Home Prices And The Reality Of Mortgage Modification

Credit Default Swaps and Mortgage Backed Securities

The Anatomy Of Deflation

Synthetic CDOs, Ratings, And Super Senior Tranches: Part 3

Synthetic CDOs, Ratings, And Super Senior Tranches: Part 2

Synthetic CDOs, Ratings, And Super Senior Tranches: Part 1

Tranches And Risk

You’re Trespassing On My Credit Event

Mark To No Market Accounting

Synthetic CDOs Demystified

A Conceptual Framework For Analyzing Systemic Risk

Securitization Demystified

Derivatives/Synthetic Instruments Demystified

Netting Demystified

Systemic Counterparty Confusion: Credit Default Swaps Demystified

The Not So Efficient Market (Theorem) Hypothesis

2 thoughts on “Indexed Archive

  1. Have you ever written about Derivatives and Bank Insolvency?

    I am wondering if I understand this right: in a banking insolvency, those with derivative contracts with the failed bank get netted, and collateral absorbs losses. The conservator can transfer contracts to another bank, if it would be the best result. After all that, then if the failed bank still owes anything to the derivative counterparty, which happens?

    • The derivative counterparty is superior to senior unsecured clients for the remaining claim, and gets paid before senior unsecured, or
    • The derivative counterparty is pari passu with senior unsecured clients for the remaining claim.

    Any help you would give me with this is appreciated.

    • We need to be precise – “banks” aren’t eligible for federal bankruptcy, but instead go into FDIC insolvency. Broker Dealers (e.g., Lehman) are eligible for bankruptcy. There are similar rules for derivative contracts in both cases, but I wanted to clear up which you were asking about first.

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