"Exotic derivatives" refers to complex financial contracts or investments that are unique or unconventional, usually created for specific needs, and often involve higher risks compared to regular, more common investment options. Full definition
In 2012 JPMorgan Chase was caught gambling in exotic derivatives in London in a scandal that became known as the «London Whale.» (wallstreetonparade.com)
It is noteworthy that JPMorgan, the bank that surreptitiously used hundreds of millions of dollars from its FDIC insured bank to gamble in exotic derivative trades in London in 2012 and lose at least $ 6.2 billion is on the above list for posing high contagion risk. (wallstreetonparade.com)
Oxford Lane invests in collateralized loan obligations (CLOs), which are exotic derivatives attached to corporate loans. (kiplinger.com)