Fitch cautious on bank swap ratings

Fitch is considering providing separate ratings for derivatives liabilities but warns against relying on assumptions of regulator behaviour in a resolution scenario

danger-slippery-surface-sign
'Unknowns' remain in bank resolution frameworks

Fitch Ratings is considering becoming the second rating agency to rate some banks' derivatives liabilities higher than senior unsecured debt. While it gives struggling swap counterparties of structured finance vehicles another reason to cheer, it may only apply to dealers in a handful of jurisdictions.

In a discussion paper released yesterday (June 16), Fitch outlined how it may treat instruments that it believes are less likely to be bailed in during a resolution scenario, such as derivatives

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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