Illiquidity means some hedges are no longer possible – GE
End-users unable to execute certain trades as dealers retreat, claims swaps counsel
Corporates are finding it harder to find liquidity in the over-the-counter derivatives market, forcing some to cut back on their hedging activities, according to a derivatives lawyer at General Electric.
Renuka Gupta, associate general counsel for derivatives and reform implementation at General Electric and a member of the US Coalition of Derivatives End Users, said that while corporates are
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