Bank initial margin posting raises liquidation concerns

Initial fears


In less than two months, long-awaited Basel III capital reforms will officially become a reality for many banks in both Europe and the US. In the run-up, derivatives dealers, like overweight bantamweight boxers crash-dieting to shed a few pounds before a fight, have been desperately trying to bring down their risk-weighted assets (RWAs), against which regulatory capital is held.

For most banks, the slimming-down strategy has centred on a handful of tried-and-tested techniques, including unwindin

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: