Is asset-backed credit support an option for energy firms?

Asset-backed credit support could be a viable option for energy producers wishing to better utilise the value of their assets to manage collateral obligations under hedge transactions, write Chad Mills, Chris Hayes and Jon Hoff

Secured trading arrangements

In the run up to the passage of last year's Dodd-Frank Act in the US, a chorus of concerned end-users of hedging instruments sounded alarm bells about whether they would be required to post vast amounts of additional collateral to support their hedging activities. One particular concern was whether end-users could continue to avoid posting cash and other liquid collateral to banks and other swap dealers by providing a security interest on other end-user assets, such as oil and gas reserves or

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

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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