Banks hunt for asset-backed securities as liquidity swap market stagnates

liquidity ratio

Banks are sourcing illiquid assets from other financial institutions to use as collateral for liquidity swaps with insurers.

Lloyds Banking Group is one of a number of banks that are looking to third-party assets to meet demand from insurance companies that are keen to undertake liquidity swaps as a way to increase the yield on their liquid assets.

The volume of liquidity swaps has fallen over the past year as the supply of suitable illiquid bank assets has lessened and the need for banks to

To continue reading...

You need to sign in to use this feature. If you don’t have a 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 indvidual account here: