Các sản phẩm tài chính mới đang được phát minh ra ở các cấp độ khác nhau của sự phức tạp, từ đơn giản đến rất phức tạp, với mỗi mức độ giả định một loại nhất định và mức độ rủi ro tín dụng. Vì vậy, một phần của thiết kế của họ là khái niệm tiếp xúc chuyển giao liên quan đến mặc định (hoặc các đối tác) của đối tác. | Credit Risk Daewoo and Technology Companies New financial products are being devised at different levels of complexity from simple to very sophisticated with each level assuming a certain type and level of credit risk. Therefore part of their design is the notion of transferring exposure associated to the counterparty s or counterparties default. Credit migration is of interest to the capital market for investment purposes particularly for diversification reasons. Contrarians say that the capital market as a whole does not have the same commitment to a credit relationship that a bank has. Banks have experience in acting as intermediaries. This is true but it is no less true that no bank has all by itself the huge amounts of capital needed to finance modern large-scale projects. Nor do banks want to assume the entire associated amount of credit risk. See also the example of Daewoo in the following paragraphs. Beyond this consideration is the fact that the steady introduction of new financial instruments alters market behavior over time including the willingness to accept a greater amount of leverage than was customary. As shown in Part One the notion of a growing level of gearing is one of the major changes in market behavior and morals. Gearing is increasingly used as a tool to multiply financial power. But it also multiplies credit risk and market risk being assumed. In times of crisis high leverage may have catastrophic consequences. Opinions are divided on how much is too much. Some people think of leverage as something to boast about not something to conceal. They believe that people who know how to gear their assets and liabilities are both clever and skillful. Then comes the day of reckoning as with LTCM in 1998 and with Daewoo in 2000. Chapter 3 discussed credit risk in connection with derivative financial instruments. Leveraging and flagrant mismanagement are by no means its only reasons. It may be that a business downturn catches a company off-guard. Its .
