The reasons for failure:
MGAG failed due mainly to cash-flow problems resulting from large oil forward
contracts it had written. MGRM employed a stack hedge strategy and placed the
entire hedge in a shortdated delivery months, rather
This paper studies the consequences of the distinct regulatory environment for U.S.
public pension funds by examining their asset allocations, liability discount rates,
inflation protection, asset valuation smoothing, and performance.
We empirically docum
2, briefly describe the herstaat case.
Herstatt is a small german bank, of which the license was withdrawn by the German
regulator in 1974. It had received incoming payments in DM. in expectation of
outgoing us dollar payments from its correspondent ban