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

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 View our subscription options

If you already have an account, please sign in here.


Want to know what’s included in our free registration? Click here

This address will be used to create your account

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 individual account here