Since August 2007 global markets have been in a period of what many would consider a long overdue reassessment and repricing of risk, after immediate and intensive corrective action to preserve liquidity in financial markets. The market turbulence also illustrates the consequences of a period of over-consumption and over-production of complex financial products, combined with serious difficulties in monitoring the associated risks.
In fact the benefits that should normally have been derived from financial innovation, such as complex securitised products, became associated with entirely new risk configurations.
