Tail Risk Killers: How Math, Indeterminacy, and Hubris Distort Markets

Index

Figures are indicated by f and tables are indicated by t.

AA credit spreads, 271

ABCP (asset-backed commercial paper), 100

Abelian group, 174–175

ABSs (asset-backed securities), 100

Abstraction:

of numbers, 169

as worldview, 304–305

Adaptation, 60

AIG, 244–245

Algebra:

“algebraization,” 296, 301–302

intuitions, 294–297, 348

learning from, 299–301

and “phynance,” 302–304

symmetry in, 297–301

Alternating groups, 299

Antibiotics, 7

Arbitrage, 213–215, 264

Arrears, 66–67

Asset class:

sovereign debt as, 130–131

volatility of, 183

Asset-backed commercial paper (ABCP), 100

Asset-backed securities (ABSs), 100

Assets:

prices of, 181, 188–190

rich, 167

Austerity, 15–17, 69–77

meaning of word, 69

South Korea, 75–76, 76f

South Vietnam, 70–73

and Treasuries, ...