• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint


1.Philippe Jorion, 1995, Big Bets Gone Bad, Academic Press, San Diego.
2.Sarah Lubman and John Emshwiller, 1995, “Before the Fall: Hubris and Ambition in Orange County: Robert Citron's Story,” The Wall Street Journal, January 18, p. A1.
3.Philippe Jorion, 1995; see note 1.
4.Nell Henderson, 1994, “A Municipal Finance Star's Rise and Fall: Orange County Treasurer's Successes Drew Unquestioning Investors,” Washington Post, December 8, p. A1.
5.Bernard Baumohl, 1998, “The Banks' Nuclear Secrets,” Time, May 25, p. 46.
6.Lou Cannon, 1994, “The Great Orange County Bust,” Washington Post, December 28, p. A23.
7.David Lynch, 1994, “Orange County Culprit: Borrowing,” USA Today, December 7, p. 2B; Nancy Ann Jeffrey, 1994, “Your Money Matters: Lesson from California Mess,” The Wall Street Journal, December 21, p. C1.
8.Sarah Lubman and John Emshwiller; see note 2.
9.Scott Reckard, 1995, “Orange County Sues Merrill over $2b loss,” Boston Globe, January 13, p. 29.
10.The portfolio in this example is representative of Orange County's portfolio. However, it is not an exact description. The Orange County portfolio included other investments, some of them exotic, such as structured notes. However, these other investments were also big bets on declining interest rates and reacted similarly to the example when interest rates increased. Therefore, I used the most prevalent investments (treasuries and reverse repos) in the portfolio for the illustration.
11.Laura Jereski, 1994, “But No Cigar: How a Rescue Mission Failed, Just Barely, in Orange County,” The Wall Street Journal, December 22, p. A1.
12.John Greenwald, 1994, “The California Wipeout,” Time, December 19, pp. 55–56.
13.Laura Jereski, 1994; see note 11.
14.Thane Peterson, 1996, “Orange County Aftermath,” Business Week, December 2, p. 53.
15.Jim Impoco and Mike Tharp, 1994, “Trouble in Paradise,” U.S. News & World Report, December 19, pp. 52–54.



Not a subscriber?

Start A Free Trial

  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint