https://risksandreturns.com/category/derivatives/ In search of asymmetric trading opportunities… en-US https://risksandreturns.com/2007/03/17/mortgage-derivatives/ https://risksandreturns.com/2007/03/17/mortgage-derivatives/ Sat, 17 Mar 2007 20:33:52 +0000 The Sudden Debt blog gives an example of how unlimited derivatives with increasing leverage can be written on a single mortgage loan. It underscores the likelihood that a rise in mortgage defaults will lead to magnified financial losses. The post is here.