FX Week

BarCap rebuts Buffet’s warning on derivatives

Diamond and Barclays Capital’s global head of rates, Jerry Del Missier, attributed Buffett’s comments to a reflection of his views about the stand-alone derivatives business Gen Re Financial Products. The so-called ‘Sage of Omaha’ acquired the unit when he bought its parent, insurance company Gen Re Corporation, in 1999. He subsequently failed to sell the derivatives unit, despite strong initial interest from market participants.

Diamond added that derivatives were valuable risk management t