Dealers suffer in euro rates desert
Analysis shows collapse in swap and bond bid/offer spreads, as traders say business is “unsustainable”
Welcome to the great European rates desert: bid/offer spreads have more than halved in many flow products over the past two years, with total revenues – the available ‘wallet’ – shrinking 37%.
Around 40 dealers are trapped in this unforgiving terrain, and it’s taking a toll, with some now privately describing their business as doomed unless something changes.
“The whole thing is in question – the business is not sustainable,” says the head of flow rates at one large European bank.
A member
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Derivatives
7 days in 60 seconds
SA-CCR, SOFR lending and model approval
The week on Risk.net, November 21-27, 2020
Receive this by email