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How Does Proprietary Trading Expose Investment Banks to Interest-Rate and Credit

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How does proprietary trading expose investment banks to interest-rate and credit risk?


Definitions:

Cognitive-Behavioral

Refers to a psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors.

Psychodynamic

A psychological perspective that emphasizes unconscious processes and past experiences affecting current behavior.

Narcissistic Personality Disorder

A mental disorder characterized by an inflated sense of self-importance, need for admiration, and lack of empathy for others.

Schizoid Personality Disorder

A personality disorder characterized by a long-term pattern of detachment from social relationships and a limited range of emotional expression.

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