The downgrade trigger trap

Trigger trap


If the Basel Committee on Banking Supervision had a suggestions box in the foyer of its Swiss headquarters, the majority of submissions from the banking industry would probably be unprintable in the pages of a family title such as this. But there would be one, at least, that regulators might embrace – the idea that downgrade triggers embedded in bilateral derivatives contracts should be banned.

The triggers embody two things regulators want to end. First, a mechanical reliance on credit ratings

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:

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 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: