Dealers turn to structured products for LCR relief

Liquidity options for tackling Basel-mandated LCR come of age

bis-tower-basel
Bank for International Settlements, Basel, Switzerland

Offers of free-money trades generally set alarm bells ringing among seasoned investors, and rightly so. Yet according to some, banks have begun hawking a breed of easy money trades at terms too attractive to resist.

These products take the form of options that offer solid returns at low, or sometimes near-zero risk. Why? Because they are designed to help banks meet the liquidity coverage ratio (LCR) – one half of the Basel Committee on Banking Supervision's post-crisis liquidity requirements

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

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