Top Swiss banks’ exposures to derivatives and securities financing transactions (SFT) counterparties leapt over the first half of this year, though the build-up did little to change the overall riskiness of their portfolios.

At UBS, counterparty exposures-at-default (EAD) hit $125.4 billion at end-June, up 20% on six months prior. Risk-weighted asset (RWA) amounts calculated for these exposures, though, rose a more modest 12% to$38.6 billion. Including exposures to central counterparties (CCPs), these RWAs totalled almost $40 billion. At Credit Suisse, EAD spiked 45% to Sfr 97.2 billion ($106.1 billion) over the first half, and RWAs 20% to Sfr 22.6 billion – or Sfr 23.9 billion including CCP exposures.

The discrepancy in EAD and RWA moves at both banks can be traced to the risk-weighting of the additional exposures they took on over the six months to end-June.