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Put up to four markets on the same ruler. The shapes do most of the explaining.

EXITSWINGLEVERAGECARRYFRAUDNO RECOURSEBARRIEREXPERTISE
  • Weather derivatives 56 Tough A specialist hedging tool with almost no retail footprint: built for corporate treasuries, not traders.
  • Distressed debt 63 Extreme Closed to individuals and won in courtrooms rather than markets: the outer edge of both the barrier and expertise axes.
  Weather derivatives Distressed debt
Exit difficulty 4 4
Volatility 4 5
Leverage 2 2
Carry cost 2 2
Fraud risk 1 2
Protection gap 3 3
Barrier to entry 5 5
Expertise needed 5 5
Difficulty 56 Tough 63 Extreme
In a sentence Contracts that pay out based on temperature, rainfall or wind, letting businesses hedge the one variable nobody controls.Buying other people’s bad debts at a discount, either to restructure the borrower or to collect more than you paid.
Unit Heating or cooling degree days; millimetres of rain Portfolio, or an individual claim
Smallest realistic trade Institutional and corporate Institutional; portfolios typically sold in bulk
Settlement Cash, against published meteorological data Negotiated sale and purchase agreement

The fingerprint measures how demanding a market is to take part in. It is not a rating or a recommendation.