Derivatives: Mexico and Brazil come to terms with meaning of exotic

Central banks save the day

Suitability debate

Banks won’t be fooled again

EXOTIC DERIVATIVES HAVE had a bad 12 months. They have been branded the evil product behind the global recession, while the banks that created them have paid a heavy price for their use. In Mexico and Brazil some corporates used exotic currency derivatives to bolster their balance sheets. Now the regulators, bankers and corporates are sorting through the damage hoping to develop solutions that will make this a one-off problem.