Financial Times FT.com

Insight: Credit markets face high price for sleight of hand

By Satyajit Das, risk consultant and author of Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives

Published: December 11 2007 18:42 | Last updated: December 11 2007 18:42

Banks have been indulging in their version of the shell game – and this sleight of hand will have long-lasting implications for the credit markets.

To recap: the game requires three shells, under one of which is placed a small pea. The shells are shuffled around and bets are taken on the location of the pea.

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