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Review: Barings Bankruptcy and Financial Derivatives

Barings Bankruptcy and Financial Derivatives is authored by Dr Peter G. Zhang. Dr Zhang was one of the youngest members in the International Association of Financial Engineers. He is educated in economics and finance. Dr Zhang specialises in financial derivatives and has worked at UBS. He is also the author of other publications, including Exotic Options.

A book about the collapse of Barings Bank and understanding financial derivatives does seem a bit odd (apart from the fact that Nick Leeson illegally trading derivatives) but both topics were of high interest when the book was published in 1995. Upon reading the book, you'll also gain
insight into how financial derivatives (as well as other factors) played a part in the collapse of Barings Bank.

Below is my review of Barings Bankruptcy and Financial Derivatives...

It's interesting

The collapse of Barings Bank is an interesting subject for most. No matter what you trade, knowing and understanding other financial markets including the basics of financial derivatives can also be interesting. This book provides a fairly brief but beneficial view of both.

Part III: General Discussions and Lessons from the Crisis was perhaps the most interesting part of the trading publication. This section of the book provides details about the Japanese Stock Exchanges, the Kobe earthquake, loose internal bank controls and other points that had a major influence in the collapse of Barings Bank.

It covers a wide-range of financial derivatives

Forwards, futures and options are all explained in the book. The reasoning for traders purchasing these financial derivatives is also explained.


I feel there is very little I can say about Barings Bankruptcy and Financial Derivatives. It is worth a read (if you are interested in the topics) but it is best to read a more detailed book solely dedicated about the collapse of Barings Bank (Going for Broke) and a book solely written about financial derivatives (Options, Futures & Other Derivatives). Though the comparisons, discussions and insights offered in this book are unique.

If you would like to purchase this book, please use this link if you are in the UK or this link if you are in the US.


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