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Investment banks are able to borrow billions of dollars and make huge trades because, at the end of the day, their counterparties believe they are capable of making good on their promises.
Goldman stood to gain from the housing market's implosion because in late 2006, the firm had begun to make huge trades that would pay off if the mortgage market soured.
On Dec. 18 — the day that Miami won its 12th straight game — the Magic made two huge trades, acquiring Gilbert Arenas from Washington and Hedo Turkoglu and Jason Richardson from Phoenix.
Some allege they are even abusing their positions as the current darlings of the venture world to make huge trades in well-baked companies without any board obligations, but still get paid like VCs with huge management fees on these mega funds.
Working together, traders would make huge trades to manipulate the price of currencies.
That same year Goldman Sachs began to "make huge trades that would pay off if the mortgage market soured.
Similar(54)
A career in science involves huge trade-offs.
It is fueling huge trade deficits in the United States and Europe.
Both nations are accustomed to running huge trade surpluses.
The result: huge trade and current-account surpluses.
In fact, the state has a huge trade surplus.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com