Fixed income derivatives – There must be a betterway

Sophisticated derivatives players are still searching for the best way to sell their wares. With specialized derivatives teams? Or along with the cash products? David Shirreff reports

    Author: David Shirreff

Since derivatives aren’t an asset class it surely makes sense to sell them along with the underlying cash instrument rather than market them independently.




Mehmet Dalman




That’s the logic. But in practice even the major players don’t sell derivatives in such an integrated fashion. The main obstacle is history. Derivatives started and flourished in most firms as an independent product area. The politics of institutions, and managers protecting their turf and their jobs, has meant that integration between derivatives and cash has generally been a slow process.

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