Leverage
UAE, Qatari banks hit record risk density in Q2
Leverage exposure declines lift ratios as US and Chinese banks move lower
Kookmin’s SFTs surge 40% on higher repo
Record securities financing transactions contributes to 15bp leverage ratio drop
Asian dealers may be more exposed than US in AI selloff scenario
Prime brokers face regional counterparty risk from huge flows in leveraged ETFs, say risk managers
NatWest, HSBC leverage headrooms hit record lows
Banks buck UK peer trend ahead of BoE leverage ratio reforms
CBLR overhaul opens door to 348 more banks
Only 60 community banks still excluded from opting into leverage ratio-only requirements
Rapid-fire repo raises hopes of cheaper, faster trading
Tokenised Treasuries piloted by DTCC could squash settlement cycles and enable 24/7 repo
BoE leverage overhaul could free up $9bn for UK banks
NatWest and Lloyds stand to benefit the most, while HSBC and StanChart face modest increases
We won’t copy UST clearing mandate wholesale in UK – BoE
Senior official also indicates that any minimum repo haircuts will likely be calculated at portfolio level
Megabanks boost repo exposures after SLR reform
Volumes of repo-style transactions at US systemic banks top $2.5trn, helping drive record-low SLRs in Q1
UK insurers weigh alternatives to funded reinsurance
Tougher-than-expected PRA capital proposals push insurers to explore new sources of yield
US banks’ TLAC buffers swell after SLR reform
Early adoption lowers TLAC and debt constraints as five banks move off leverage-based LTD requirement
Bank of England softens tone on CCP cross-product margining
Breeden supports margin efficiencies to encourage more repo clearing, but still warns on leverage
FSB warns of ‘circles of risks’ in bank risk transfer deals
Credit lines, portfolio financing and NAV facilities for private credit funds could rebound on banks
Large hedge funds push leverage to post-pandemic high
OFR data shows renewed build-up as regulators eye reporting changes
Korea’s leveraged ETF expansion aims to stem overseas outflows
Single-name products due in May with two times leverage and strict investor safeguards
SLRs at four US banks sink to record lows on early rule switch
Goldman Sachs biggest beneficiary of softened minimum requirements
End-quarter repo compressions still widespread at global banks
Erste sees biggest leverage boost among 41 banks from end-2025 SFT compression
Leveraged ETFs may have fuelled Kospi plunge
Record one-day drop in Korean equity markets follows months-long surge driven by leveraged bets
A new approach to asset pricing models: the term structure of leverage and refinancing risk
The authors provide new insights into leverage-related risk factors in stock returns and draw attention to the significance of debt maturities and refinancing in understanding leverage effects in asset pricing.
Market players warn against European repo clearing mandate
Regulators urged to await outcome of US mandate and be wary of risks to government bond liquidity
Treasury repo clearing mandate would free up $207bn leverage exposures for G-Sibs
OFR estimates repo clearing share would jump from 45% to 77% under SEC rules