more difficult to obtain. the growth of credit derivatives also has been constrained by the lack of hedging instruments. there really are no exchange - traded instruments that can be used to effectively hedge credit risk. given my earlier association with exchange - traded markets, i am surprised that this profit opportunity has not yet been exploited. it illustrates, no doubt, the difficulty of overcoming the impediment of data availability and of pricing credit risk. a discussion of factors that have supported the growth of otc derivative markets would not be complete without also noting the importance of infrastrucuture developments and isda ’ s contributions in that area. master agreements have played a critical role, enabling counterparties to manage the credit risk of their positions more effectively. isda and its members perceived the value of uniform documentation and supported development of a standard master agreement that allows for acceleration and close - out netting in the event of default. work didn ’ t end with the creation of the master agreement, however, and isda has played a continuing role educating counterparties about the importance of utilizing master agreements. as time passes, i have come to appreciate more and more the role that infrastructure elements play in fostering the growth of markets. isda has developed standard documentation for some credit derivatives, for example, which should aid in the development of that product. collateral agreements are another development that shows great promise for helping market participants manage their credit risk and for facilitating growth of the market. here also, isda has made useful contributions. standard collateral agreements, either title transfer or pledge, have been developed for several jurisdictions. collateral agreements, like the master agreement, must be based upon sound legal foundations, and isda has supported analysis in this area, too. these efforts give market participants additional tools to help them manage the risks in their otc business and ensure that any perceived reductions in risk rest on a sound legal foundation. viewed broadly, the group of thirty study of derivatives ranks as another key supporting factor in the development of the market. as i noted earlier, the broad acceptance of the value - at - risk approach for managing portfolios of derivative instruments fostered the growth of the market and the diversity of products that could be offered. discussions in the g - 30 report also formed the basis of the internal - models approach that supervisors ultimately adopted for the capitalization of market risk in trading accounts. the report defined a set of sound risk management practices for dealers and end - users as well as describing var techniques.

57 percent share of all four - year undergraduate degrees. for black women, the gap is even bigger : they accounted for 1. 5 percent of undergraduate economics degrees compared with a 6. 2 percent share of all undergraduate degrees. 3 a growing body of research and evidence makes clear that the quality of the economics profession and its contribution to society will be greater when a broader range of people are engaged. 4 research shows that greater diversity results in better outcomes — it broadens the range of ideas and perspectives brought to bear on solving problems, and it brings important insights to the analysis of our economy. as amanda bayer and cecilia rouse have documented, microeconomic experiments and other research demonstrate the benefits of diversity for group deliberations and decisionmaking. for instance, one well - known experiment found that racially diverse groups of students outperformed other groups in solving problems, and another found similar benefits from gender diversity. 5 turning to my own institution, it is notable that when the congress established the federal reserve system, it took great care to ensure there would be a diversity of perspectives around the decisionmaking table in terms of regional representation. that is why we have 12 reserve 1 / 3 bis central bankers'speeches bank districts represented on the federal open market committee. but we have not lived up to that standard on other dimensions of diversity. for instance, it was not until 2017, more than 100 years after the creation of the federal reserve, that the first african american, raphael bostic, was chosen to lead a reserve bank. we need to do better than that, and we will continue our efforts until the group of people around that table is more like america. to achieve our goals, we will need to improve the diversity of the economics ecosystem more broadly. of course, the federal reserve system hires people with all kinds of expertise — from lawyers to law enforcement, from financial analysts to data scientists. but our footprint is especially large in the economics job market, where as a system we routinely hire one of every 25 newly minted economics ph. d.'s each year. in short, we have a significant stake in the diversity and vibrancy of the economics profession overall. why consider a career in economics? i have discussed why it is important for the federal reserve and for our economy to see more women of color embracing the field of economics. but what ’ s in it for you? there are many ways your career may unfold where economics might fit in it. some of you may decide your