Transparency premium: insurers seek swaps reporting reform

US insurers claim their bespoke swaps are being front-run, raising hedging costs

Something strange has been happening on the derivatives trading desks of US insurance companies in recent years. When executing a bespoke product such as a long-dated forward starting swap, a request for quote (RFQ) is sent to dealers, prices are received and the trade is executed in the normal fashion. Then, 15 minutes later, the phone rings. A bank salesperson would like to know why the insurance company didn’t execute the trade with them – even though they weren’t in the RFQ. 

The timing of

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: