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Reconstructing loan management

European banks are taking advantage of the benign credit environment to overhaul the way they manage their loan portfolios. With credit spreads at record lows, banks are increasing their use of credit derivatives for hedging. By Rachel Wolcott

Sovereign remedy

The World Bank, the lender of last - and often first - resort for the poorer nations of the world, uses derivatives to hedge its own risk book much as any other bank would. But it has another important role in the risk business: acting as an intermediary…

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