IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-50894-1_9.html
   My bibliography  Save this book chapter

Highly Leveraged Institutions, Regulators, and the New Lenders of Last Resort

In: Alternative Investments and the Mismanagement of Risk

Author

Listed:
  • Dimitris N. Chorafas

Abstract

Globalisation and liquidity are pillars of modern capitalism, but there are unwritten laws as well. The first law of capitalism relates to globalisation. It says money will migrate to the business environment it considers to inspire more confidence and/or where the highest return is to be had. The pressure is relentless on money managers to care for the assets entrusted to them, and to better their past performance. One of the problems is that so much money pursuing relatively few alternative investment strategies reduces the potential returns to everyone. There is no evidence that pursuing strategies such as arbitraging the statistical difference between one convertible bond and another eliminates market inefficiencies, or provides for sustained long-term returns. But there is plenty of reason to believe that a steady pressure on the most successful companies to continue their performance, such as fast growth despite the increase in their size following years of rapid development, leads to new inefficiencies.

Suggested Citation

  • Dimitris N. Chorafas, 2003. "Highly Leveraged Institutions, Regulators, and the New Lenders of Last Resort," Palgrave Macmillan Books, in: Alternative Investments and the Mismanagement of Risk, chapter 9, pages 215-236, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50894-1_9
    DOI: 10.1057/9780230508941_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-50894-1_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.