No risk reduction from derivatives


According to a recent report by rating agency Standard & Poor’s, the apparently large volume of credit derivative activity has had less of an effect on banks’ credit risk than has been supposed.

S&P estimates that of the $3 trillion total notional amount of credit derivatives outstanding, only about $100 billion represents a transfer of credit risk from banks’ lending and trading activities to other market participants. According to the rating agency, the remainder represents the trading book

To continue reading...

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