Counterparty concerns slow family office derivatives use
HNWs got burnt in the Lehman crisis and are still cautious over exposures
Asia family offices are turning to derivatives products in greater numbers as a solution to the current low interest rate environment in the region but legacy concerns over counterparty exposure following the Lehman Brothers insolvency in 2008 are slowing take-up.
Despite the lower complexity and leverage of today's products and better capitalisation of providers owing to Basel III reforms, Frank Troise, senior vice-president at Infinity Partners, said that counterparty risk remained at the
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