Investors have ‘no incentive’ to use swap futures, says Wallin

Real money firms have enough collateral to stick with swaps, buy-side exec argues

cme
CME - swap futures proponent

So-called real money investors have "no incentive" to ditch over-the-counter derivatives in favour of swap futures unless they face serious collateral constraints, according to James Wallin, a senior vice-president at Alliance Bernstein.

Speaking at the Risk USA conference in New York, Wallin said he gets calls "all the time" about swap futures. He is not a fan, however.

"We've looked at these products. What it boils down to is that, unless you're capital constrained, there is no incentive to us

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