Banks scrutinised for offloading deal contingent risks on to funds

Critics say practice could lead to disclosure of sensitive client data

Offloading

Banks offering deal contingent hedges are divided over whether it is appropriate to offload the risk of the underlying transactions falling through on to hedge funds.

Market participants say that although the practice has been around for years it has become increasingly necessary, as higher volatility places a strain on banks’ capacity to take on deal contingent client trades. Not every bank offloads risk in this way, and Risk.net understands that only a handful of deal contingent trades involve

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