Industry Open-Sources Model For Infamous CDS 161
GlobalEcho writes "Credit default swaps (CDS) are infamous for bringing down AIG and requiring a bailout of hundreds of billions of dollars. Because the market for these was so murky, the US government has insisted that Wall Street create a clearinghouse for these contracts. In a fresh twist, part of the deal is that the models used to price CDS have been standardized, and that the pricing code was made open source, under a somewhat BSD-like license. The source code (originally written by JPMorgan) provides the basic pricing routines, plus an Excel interface. To my knowledge this is the first significant migration of an investment bank product platform from its usual super-secret proprietary home to the rest of the world."
Excel interface!?!? (Score:5, Funny)
Turns out BSD wasn't dying (Score:5, Funny)
My 401k was.
Pennies (Score:3, Funny)
Let's change it. I've got this idea regarding fractions of a penny...
Re:Turns out BSD wasn't dying (Score:3, Funny)
Heard on Wall Street:
I lost half my money, but I still have my wife.
Re:Pennies (Score:3, Funny)
Yeah, but if caught you could end up going to federal POUND ME IN THE ASS prison...with Bernie Madoff as your bunk mate.
Re:But... but... (Score:3, Funny)
DONKEY.BAS was open source from the beginning.
Re:I think I see the problem (Score:2, Funny)
#include // This function converts a bad day to a good one (if it's in list).
I believe I have found their list :
std::string goodDayList = {"hookers", "cocaine", "bailout"};
Re:Turns out BSD wasn't dying (Score:5, Funny)
Heard on Wall Street:
I lost half my money, but I still have my wife.
Scratch that...quarter of my money.
Re:Open does not make them any better (Score:1, Funny)
I don't see how that could possibily go wrong! Why it's almost as sound an idea as pitching an off-Broadway musical to multiple backers, selling over 400% total shares in the profits, and then pocketing the cash when the musical fails! All that is need is a subject matter practically everyone detests, therefore no one will pay money to see it! Hmm, perhaps something that focused on the early adult life of a hated facist dictator... Yes that would be perfect!
Re:government bailout != communism (Score:3, Funny)
Under communism, man exploits man. Under capitalism it's the other way round.