Systems at Risk Episode 3 | Craig Pirrong, Professor of Finance and Director, Global Energy Management Institute, Bauer College of Business University of Houston
SmarterMarkets™
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Is There a Way Out of That Loop?
volatility goes up, and then margins go up to cover the increase in risk. Valti it is real low. And so there's always pressure to reduce initial margins during normal times. The inherent logic of the way clearers work leads them to say, hey, ill ti his way up. We're facing much more credit risks. We get a jack up margins.
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