Grupo Santander has no derivatives exposure to sovereign counterparties – or so the European Banking Authority (EBA) stress tests reported in July.
But a senior figure at one large European debt office tells a different story. Santander has won some of the office's swaps business in the past and is a current counterparty, he says.
So why the discrepancy? The Banco de España, which submitted data for the stress tests on behalf of its banks, admits Santander has sovereign derivatives exposure, but