Market for ‘orphan’ hedges leaves some borrowers stranded

• Companies with private credit loans often face difficulty hedging interest rate risk, with dealers put off by uncertainty over loan terms and credit quality.

• Banks that do offer hedges generally demand a hefty premium for so-called orphan transactions.

• “We’re not doing these with anyone where we don’t know a sponsor,” says a corporate rates head at a large bank.

Top 10 op risks

Top 10 operational risks for 2024

The biggest op risks for the year ahead, as chosen by senior industry practitioners

Volatility

Risk Quantum

Data insights, delivered daily

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Risk Quantum tracks thousands of data points across hundreds of metrics from organisations that represent a cross-section of the financial system. Published daily, articles are short and broken into chunks – the facts, the context and a brief commentary – and use data visualisations to get each story across.

More information

US banks’ non-core funding dependence ratio jumped in 2023

BHCs’ aggregate figure almost doubled to post-pandemic high last year

Counterparty Radar

Matchmaking and benchmarking for OTC derivatives

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Counterparty Radar is based on position data from around 20,000 US mutual funds and ETFs, rolled up to the manager level – it shows the OTC derivatives they have on their books, and who they traded them with, providing unique insights into an important market segment. More info

Morgan Stanley back on top for US insurer FX forwards trades

Counterparty Radar: Bank added $1.7bn with Mass Mutual in Q4 to overtake Citi as biggest dealer

 

Information security

pod funds

How banks are adapting to all-powerful pod funds

Growth of multi-manager funds such as Citadel, Millennium and Balyasny has forced dealers to switch tactics in attempt to preserve profits

Clearing

Events

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