Scientific Essay from the year 2010 in the subject Business economics - Investment and Finance, language: English, abstract: Warren Buffet, the world's richest man, once said that derivatives are financial "weapons of mass destruction." a term popularized by George W. Bush to describe nuclear arms. Indeed financial derivatives have a far greater impact on the market than their underlying due to their leverage effect. And the most popular and important credit derivatives nowadays are credit default swaps with a current notional value of over 60 trillion US dollars according to ISDA 1...