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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
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”
The Fallacy Of Home Prices And The Reality Of Mortgage Modification
Credit Default Swaps and Mortgage Backed Securities
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
You’re Trespassing On My Credit Event
A Conceptual Framework For Analyzing Systemic Risk
Derivatives/Synthetic Instruments Demystified
Systemic Counterparty Confusion: Credit Default Swaps Demystified
Information Overload 
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.