Dinosaur Derivatives and Other Trades. Josse Jeremy

>

      Jeremy M. Josse

      Dinosaur Derivatives And Other Trades

      “[Josse’s] exploration of the philosophical DNA of concepts of risk, value, contracts, fraud, and finance writ large starts like an itch that won’t go away and needs scratching, each vignette and chapter pulling the reader in more deeply into a discussion of the evolution of finance that I now find important and fascinating–thanks to this book.”

Steve ClemonsEditor at Large, The Atlantic

      “A compelling, interdisciplinary journey into the arcane world of finance. Josse takes a dry topic and through modern day stories and historical references deftly educates and entertains. Each topic is intricately analyzed and then all the thoughts are threaded into a coherent and unique perspective and understanding of finance as both a science and reflection of underlying societal norms. I strongly recommend this book to practitioners and students who wish to understand finance in the context of global business and its impact on society.”

Bruce R. MagidDean International Business SchoolBrandeis University

      “Jeremy Josse’s book takes you on a wild ride–from Dinosaurs to Joseph’s dream (the one speculator in history that had a direct line to the Almighty), from Macbeth to English ships at the end of the 19th century, from Lehman brothers to Ferraris, and from Talmudic scholars to antique map dealers. Faust, Marx and Atlantis (the lost continent) also appear in a slew of entertaining stories and philosophical musings which illustrate financial concepts such as derivatives, contracts, uncertainty, taxes and ownership. Josse has some strong views based on his many years of experience in the market… You may not always agree, but will always be entertained, informed and want to keep on reading.”

S.A. RavidProfessor of Finance,Sy Syms School of Business, New York

       Dinosaur Derivatives and Other Trades

      Jeremy Josse

      This edition first published 2015

      © 2015 Jeremy Josse

      Registered office

      John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom

      For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com.

      All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher.

      Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

      Designations used by companies to distinguish their products are often claimed as trademarks. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book.

      Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom. If professional advice or other expert assistance is required, the services of a competent professional should be sought.

      A catalogue record for this book is available from the Library of Congress.

      A catalogue record for this book is available from the British Library.

      ISBN 978-1-119-01959-6 (paperback) ISBN 978-1-119-01961-9 (ebk)

      ISBN 978-1-119-01963-3 (ebk) ISBN 978-1-119-01960-2 (obk)

      Cover design: Wiley

      Front cover image: © Victor Habbick/shutterstock.com

      Background overlay: © steveball/shutterstock.com

      Dedication

      To Muriel

      About the Author

      Jeremy Josse has spent the last 20-plus years of his career working as an executive in some of the world's leading financial institutions, including Schroders, Citigroup and Rothschild.

      Josse was born in London, England, and earned his BA degree in Philosophy and Economics at Trinity College, Oxford University. He subsequently did a master's degree at University College, London University, in Political Philosophy/Economics, as well as qualifying as a banking attorney.

      Josse's earliest thesis work at Oxford and London University related to certain theories of meaning as they pertained to economics. He has published numerous articles on a wide range of financial subjects including the credit crisis, bank restructurings, and financial engineering.

      Josse lives with his wife, Muriel, and three boys in New York City.

      Acknowledgments

      My first acknowledgment for a book like this really goes to the finance profession itself. It is a very old profession that is at once fascinating and engaging, yet suffers from a perennial existential crisis – what is the point of it all? But for this dichotomy, the book would simply not have been possible. I suppose this conflict can be said of many things in life, but it seems to me to be particularly acute in the finance world. I could not have committed (nor continue to commit) myself for so long to this industry if it were not compelling and important. Equally, it would be disingenuous not to recognize the periodic absurdities of the whole undertaking. It is therefore, the very nature of finance itself that engendered the issues touched on in this book – hence I am thankful to the industry for that.

      However, my first human acknowledgment must go to Ed Claflin. Ed is nominally referred to as my agent, but he has been much more than that to me. Ed reviewed every word of the book numerous times and there is not a single paragraph that he did not have some impact on. He is also a long-time master of the publishing industry (another puzzling business), a wise old bird and he has carefully advised me on all aspects of the book's production. In the course of this process, Ed has also become a personal friend.

      Ed introduced me to the Wiley publishing team and they too have been huge supporters and enablers of this book. First and foremost, I refer to Thomas Hyrkiel, who from the beginning became the book's sponsor and pushed it through all the way from contract to final production. Thomas, like Ed, saw the potential at an early stage and he too has become a friend.

      Thomas has been supported by a fine team at Wiley, including Jennie Kitchen, Sam Hartley, Ben Hall, Heather Dunphy, Lucy Valantine and others, all of whom have played their critical role in the production process.

      There are also those who made meaningful contributions to the content of the book from a research perspective. In particular, I must thank Craig Zabala of the Concorde Group for multiple reasons. Craig is a fighter, an entrepreneur and a true friend. He provided both financial and practical support for the book. In addition, his leading contributions to our joint research into the shadow banking sector had direct bearing on specific parts of the book. There are others