Counterparty concerns slow family office derivatives use

HNWs got burnt in the Lehman crisis and are still cautious over exposures

Counterparty credit risk a worry for family offices

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