They argue that it may expose pensioners too much to financial-market risk.
The value of our money is exposed to at least one of two financial risks: market risk and inflation risk.
Through the market for mortgage-backed securities, bad practices in the consumer financial market put our entire system at risk.
The current account is in surplus, but at some point a falling trade balance could send the current account into deficit, creating huge dangers and risk of macro financial market disruption.
Federal Reserve Chairman Ben Bernanke warned of continued strain on the U.S. economy and noted the negative impact of elevated volatility and risk aversion in the financial market during testimony before a joint committee of Congress Tuesday.
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During the financial crisis, the credit default swap (CDS) market, a part of the OTC derivatives market, took center stage as difficulties in financial markets began to intensify and the counterparty risk involved in a largely bilaterally cleared market became apparent.
There is a significant downside risk for oil prices if economic and financial market concerns become more widespread or take hold, regardless of the China oil support line.
We need much greater global coordination of financial regulation, facing up to systemic risk and ensuring that market participants are not able to play one regulatory jurisdiction against another.
It is timely and important for two reasons: first, the interest and investment in Shariah-compliant finance in the West continues to grow, and second, the fragile state of our financial system of late is due to the catastrophic impact of toxic financial products designed as highly sophisticated black box solutions to undisclosed market risk.
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Risks to our thesis include financial market weakness, an inability to meet relevant investment benchmarks, redemption risk and lower-than-expected performance fees.
But in the case of Orange County, says Tanya Beder of Capital Market Risk Advisers, which investigated the affair, the financial products involved were fairly straightforward.
Downing Street have rejected suggestions by the European Commission president Jose Manuel Barroso that the UK's negotiating position on financial regulation represented a "risk to the integrity of the single market".
Former Federal Reserve Chairman Alan Greenspan, who put the risks of a recession at about 30% at the beginning of the year, has said more recently that the steep housing slump and financial market turmoil in August have pushed that chance up, although the risk still remained below 50%.
Smart companies often work with a local partner to benefit from market knowledge, reduce risk, and relieve short-term financial constraints.
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Fear by those who have gotten burned in the financial crisis and therefore consider credit risk in the short term more important than market risk over the longer term.
The impact of misrepresenting or miscalculating risk was felt in the sub-prime market and cascading global financial meltdown.
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The financial infrastructure also has important effects on how market participants respond to perceived changes in counterparty risk.
Yet Drexel's collapse, which happened when the market was functioning normally, did not put the financial system or the economy at risk.
Alternatives have existed for years, and many of the world's largest financial institutions have used various tools for measuring credit risk that could be applied to the broader market.
As these countries experience retardation and stagnation in economic growth, their aggressive monetary policies run the risk of another asset bubble similar to the one that led to the recent financial market collapse and recession.
But a euro-area banking union would risk a fragmentation of Europe's single market that might leave Britain's financial industry isolated.
But the Fed just felt like they couldn't take the risk of having Bear Stearns, which has hooks in so many corners of the financial market, not just go bankrupt but go bankrupt so quickly.
On top of putting the entire financial system at risk, the hidden cost has been hundreds of billions of dollars funneled into the housing market instead of more productive assets.
"The trading strategy, which was subject to the bank's risk limits and used by many in the marketplace, was based on a legitimate market view that diversified and lowered the bank's portfolio risk during the peak of the financial crisis, " Deutsche Bank's Mr. Golden said in the statement.
Risk-tolerant businesses such as Fan Duel have already gained a financial edge by entering into a market with great legal uncertainty.
Financial scholars David Chambers and Elroy Dimson have calculated that he outperformed the U.K. stock market by a risk-adjusted eight percentage points a year over that period.
Liquidity provision by the central bank reduces systemic risk by assuring market participants that, should short-term investors begin to lose confidence, financial institutions will be able to meet the resulting demands for cash without resorting to potentially destabilizing fire sales of assets.
"To the extent that booms may engender excess leverage in systemically sensitive parts of our financial system, we need to ensure that regulations and institutional structures are designed to enhance market discipline in ways that keep risk-taking under control, " the official said.
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