Procter & Gamble, J.P. Morgan, General Electric, Gibson Greeting, Cargill. Each company has reported a surprising financial loss from derivatives trading. Each company's loss stemmed purely from over-the-counter interest rate derivatives.
According to the financial media, these unsettling developments have spurred many corporations to reassess their strategies for interest rate risk management. Chief executives and financial officers are reevaluating the price, liquidity, and credit risk they have assumed in the OTC derivatives markets.