Varying bank leverage ratio could fix ‘broken’ repo market

Risk Live: Repo with buy side should incur different leverage ratio, suggests big asset manager

city-graph-map.jpg

The repo market is “broken” but there is a way for regulators to fix it: by applying different leverage ratio requirements to banks depending on the counterparty to the trade, according to the head of trading at HSBC Global Asset Management.

“When the leverage ratio applies…it should apply differently for the interbank market and for banks [trading] with end-customers,” said Daniel Leon, global head of trading, treasury management and global solutions at the $517 billion asset manager.

“What

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: