Don’t fear the repack: why banks will retain inflation swaps role

Counterparties’ increasing use of direct trades does not spell end of intermediation

Inflation is currently front of mind for every policymaker in the UK, where prices have been rising at a higher level than elsewhere in Europe. As ministers and their advisers debate the best way to respond to the crisis, investors in the country’s inflation swaps market are grappling with their own dilemma: how to cut the costs of their inflation hedges.

One of the key discussions concerns repacks. These complex structures, introduced around 10 years ago, enable banks to turn expensive long

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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 individual account here