FSB warns on Archegos-style leverage

Isda AGM: Knot takes dim view of banks piling up leverage blind

Toppling money pile

A senior global regulator has fired a warning to banks that build up large leveraged exposures with little information on clients’ overall risk, after the collapse of Archegos Capital Management left banks reeling.

“We have seen that certain banks, particularly prime brokers, seem to be prepared to take large positions without having sufficient visibility into the total leverage of their counterparties,” said Klaas Knot, chair of the Financial Stability Board (FSB).

“I see similarities to the

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Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

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