Banks plan to relaunch off-balance-sheet derivatives units


After falling out of favour in the first phase of the crisis, derivatives product companies (DPCs) are set for a comeback, with six banks understood to be looking at launching new vehicles or revamping existing structures to cut their liquidity costs under the incoming Basel III framework.

Fitch Ratings and Standard & Poor's released proposals for new DPC rating methodologies earlier this year, after banks showed an interest - Fitch had withdrawn all DPC ratings in June 2011. Roger Merritt, a

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