Financial Innovation

Financial Innovation and Trading Lies It is hard to measure, but I think there’s a decent case to be made that financial innovation has done good things for a lot of real-world businesses. Junk bonds and real estate investment trusts and master limited partnerships and receivables securitizations and other capital-structure developments have helped companies raise money and lower their costs and attract investors and grow. There are success stories, though many of them are kind of boring. But hoo boy are the failures entertaining. Enron is of course the all-time poster…