It is no coincidence that major derivative failures have been linked to trading from abroad, including the meltdown in the financial crisis, the failure of the hedge fund Long-Term Capital Management in 1998 and, most recently, JPMorgan Chase's London Whale fiasco.
Within nine months, more than 99% of the mortgages referenced by Abacus were in default, leaving Royal Bank of Scotland's Dutch subsidiary, ABN Amro, with an $840m bill as it had insured the derivative against failure.
And thanks to various hold-ups at the SEC--the moratorium on ETFs using derivatives, the failure to act on active non-transparent funds--new funds and filings might be flowing even faster than their present pace.
Federal regulators concerned about the potential downsides to derivatives have focused on the possibility that derivatives trading contributes to "systemic risk," meaning that a derivatives-induced failure of one of the large financial institutions involved in this concentrated market could trigger a chain of related firm failures, including failures of federally insured banks.
Reliability sensitivity refers to the derivative of the failure probability with respect to the distribution parameter of basic random variable.
The reliability sensitivity, defined by the partial derivative of the failure probability with respect to the distribution parameter of random variable, can help to identify the important parameters and guide the structural optimization design.
The sensitivity, defined as the partial derivative of the failure probability with respect to the distribution parameter can help to identify the relative contribution of the individual parameter to output response and guide the optimization design.
The derivative of Coulomb failure stress with respect to the angle between the faults and the maximum compression direction yields the required relation between frictional strength and geometry of the faults and maximum compressive stress axis as given below.
The latter group of patients exhibited the most aggressive clinical course comprising of respiratory and renal failure derivative of diffuse alveolar hemorrhage and necrotizing renal vasculitis.
The selected chromatographic separation system with a HILIC (hydrophilic interaction chromatography) amide column effectively separates free choline and its phopshorylated derivatives, contrary to failure observed using standard reversed-phase chromatography.
For a parallel or series system, the derivative of the system failure probability with respect to the reliability index is analytically derived at the last step of the sequential compounding.
