Back to basics

OTC derivative portfolios grow significantly through the normal course of active flow trading, but most of the trades booked are not necessary to maintain an institution's desired risk positions versus the market. Nevertheless, as long as these trades remain in inventory, they incur operational and capital costs as well as create credit and operational risk exposure. In the event of default, they also generate legal and administrative costs.

Counterparties have the ability to terminate or unwind

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here