Disintermediation and Naked: Difference between pages

Revision as of 10:05, 7 October 2015

A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.

The only possible profit or gain is from a favourable outturn market price.

Naked positions are, by definition, speculative (rather than hedging).

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-Disintermediation refers to the general process of cutting out of the financial intermediary by companies which are in a position to borrow and lend funds between themselves, or to directly access the capital market.
+A 'naked' position in a derivatives contract is one where the holder has no other related offsetting contract, asset or liability.
+The only possible profit or gain is from a favourable outturn market price.
+Naked positions are, by definition, speculative (rather than hedging).
-Disintermediation developed as consequence of the worsening credit quality of banks following the debt crisis in the 1980s, which resulted in many large companies commanding credit ratings that were as good as, or better than, the banks.
 == See also ==
-* [[Capital market]]
+* [[Arbitrage]]
-* [[Intermediation]]
+* [[Derivative]]
+* [[Futures]]
+* [[Hedging]]
+* [[Option]]
+* [[Outturn]]
+* [[Speculation]]