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 "identifier": "kaal:entity:complex-instruments",
 "name": "Complex instruments",
 "termCode": "complex-instruments",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-008",
   "identifier": "kaal:claim:1428387-008",
   "text": "Because structured debt instruments and over-the-counter derivatives used by hedge funds can be highly complex, the hedge fund manager may be the only person competent to assess their value.",
   "abstract": "As structured debt instruments and over-the-counter derivatives used by hedge funds can be highly complex, the hedge fund manager may be the only person who is in a position to competently assess the value. This unique competency is particularly",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "condition",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "for highly complex structured debt and OTC derivatives"
   ],
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  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-014",
   "identifier": "kaal:claim:1428387-014",
   "text": "Because new hedge fund managers concentrate on highly complex and profitable instruments where pricing and valuation problems are most prevalent, it becomes very difficult for managers to guarantee investors standard or accurate pricing procedures.",
   "abstract": "Most of these new managers focus their attention on highly complex and profitable instruments where pricing and valuation issues are most prevalent. This trend can make it very difficult for hedge fund managers to guarantee their investors standard or accurate pricing procedures.",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "for newly launched funds run by managers leaving large institutions"
   ],
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   "@id": "https://wulfkaal.github.io/claims/1428387-021",
   "identifier": "kaal:claim:1428387-021",
   "text": "The principal-agent problem in complex financial products is exacerbated by hierarchies in financial institutions, which create multiple layers of agency relationships between the traders using the products and the principals bearing the real economic risk.",
   "abstract": "The principal-agent problem is further exacerbated by hierarchies in financial institutions that often create multiple layers of agency relationships to trade and invest in complex financial products.",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "in banks and large institutions trading complex financial products"
   ],
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  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-022",
   "identifier": "kaal:claim:1428387-022",
   "text": "Moral hazard is worsened when the financial products traded are so complex that the agents, mostly on the buy side, do not entirely understand them and trade for the principal on the basis of incomplete and asymmetric information.",
   "abstract": "The moral hazard problem is further exacerbated when the financial products involved in many of these transactions are so highly complex that the agents, mostly on the buy side, do not entirely understand them and trade for the principal based on incomplete and asymmetric information.",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
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   "is_failure_mode": true,
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    "where instruments are highly complex",
    "buy side agents in particular"
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  }
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 "description": "4 claims in the published works of Wulf A. Kaal carry the concept tag 'complex-instruments'. Derived node: a roster, not an adjudicated definition."
}