Derivatives Time Bomb

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Definition: Derivatives Time Bomb


Derivatives Time Bomb


Full Definition of Derivatives Time Bomb


An expression sometimes attributed to Warren Buffet who described derivatives as “financial weapons of mass destruction” that harbor latent dangers for the institutions that use them. The unbridled and unregulated use of derivatives in highly leveraged hedge strategies has the potential of creating massive selloffs should prices move against the strategies.


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Definition Sources


Definitions for Derivatives Time Bomb are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.