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Clearing a path to lower op risk

The creation of a central counterparty clearing house for credit derivatives has been on the cards for some time and this year's market turmoil means it will be high on regulators' agendas. But not everybody thinks such a development is necessary ...

It's more than a year since the derivatives industry began talking seriously about creating a central counterparty (CCP) clearing house for credit

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The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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