Deutsche Bank CRO: derivatives becoming loss leader
Core rates products may only be offered to “key clients”
New prudential rules have squeezed the profitability of interest rate derivatives to such an extent that even traditional pillars of the business may no longer be viable on a standalone basis, according to Stuart Lewis, group chief risk officer at Deutsche Bank.
Interest rate derivatives in particular have become "a very capital-intensive product" under the fourth Capital Requirements Directive (CRD IV) – Europe's version of Basel III – Lewis told attendees at the Risk USA conference in New York
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