On derivatives of technical debt: defining terms and players

Derivatives: A layperson’s definition

  • Something to happen (e.g. option to buy or sell something)
  • In some quantity (e.g. 500 shares in a company)
  • In the event of something (e.g. the stock is “in the money,” a.k.a. it’s above/blow the strike price)
  • Within a certain period of time (e.g. before the options contract expires)
Image of a historical insurance agreement with text overlaid to describe a derivative
Derivatives have a lot in common with insurance agreements
Painting of an old fashioned bazaar with examples of derivatives agreements overlaid
There are many types of derivatives, but they often have things in common
Pizza with words overlaid that say “Pooling and repackaging”
A “slice” of a pool of tech debt?

Who is the borrower? And who is the lender?

Emoji showing money going from the bank to a house and more money going from a family to a businesswoman
As consumers, we naturally empathize with the “borrower”
A businesswoman emoji who’s face is covered by the question: “Who are we borrowing from when we take on tech debt?”
The Tech Debt Lender Question




History nerd, ex-equities analyst, student of IT trends, printmaker, mom, goofball @dormaindrewitz

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Dormain Drewitz

Dormain Drewitz

History nerd, ex-equities analyst, student of IT trends, printmaker, mom, goofball @dormaindrewitz

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