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...It declined to comment on the names of the banks and added: “Counterparty risk is an industry concern, not specific to Binance.”...
...The regulator has proposed that insurers limit how much funded reinsurance they do with any one counterparty, among other safeguards....
...The PRA has separately proposed, as part of a consultation process that runs until this week, that firms set limits on the funded reinsurance deals they do with individual counterparties....
...Introducing some cash margin into repo trades will help protect banks and other counterparties who lend in this way, but reduces the amounts hedge funds can borrow....
...“In recent weeks, we have been actively executing a plan to reduce the concentration we have with a particular counterparty — despite the fact that it constitutes a small portion of our total assets under...
...TGT also claims that Tyr ignored an internal risk requirement limiting exposure to any single counterparty to 15 per cent of assets....
...funds or were unprepared if their trading counterparty got into financial difficulties....
...Whatever timeline chosen, the UK will be out of sync with counterparties in Europe or the US. This is not helpful for cross-border transactions....
...WWR refers to the risk that a PB’s credit exposure to a hedge fund counterparty increases at the same time as the likelihood of the counterparty’s default....
...CDS were supposed to make banks safer by magically transferring the risk of loan defaults to counterparties outside the system....
...As Bair herself notes, today’s CLNs are different to the crisis-era credit default swaps because they are pre-funded and hence eliminate counterparty risk....
...Since the 2008 financial crisis, there has been a push to move as much bilateral derivatives business — eg interest rate swaps — as possible onto central counterparties (CCPs) in order to reduce counterparty...
...If a reduction in the settlement cycle reduces risk, then why not eliminate counterparty risk completely by moving to T+0?...
...It’s also important to say that there’s counterparty risk as the options bundled up inside the products involve big investment banks....
...risk....
...On the subject of counterparty risk, the BoE said many banks had made “insufficient attempts” to work out how concentrated their risks were to clients and collateral....
...At the time, Julius Baer said its total private debt loan book amounted to SFr1.5bn, including 21 other counterparties....
...But this pools helluva lot of risk in these central counterparties (CCPs), so everyone is naturally deeply invested in making sure that even a major member default can’t bring one down....
...This fits with a general sense that single-name CDS is a bear market product, with interest increasing as idiosyncratic risk rises....
...As such, any stress at an investment fund can then trigger problems at counterparty banks....
...The G20 has not really given that risk the level of attention that it needs,” she said....
...“You have to balance risks against benefits,” he said. “You have much better tracking [with a synthetic ETF] because you don’t have the tracking risk in your fund, it’s with the counterparty....
...However, the group’s complicated structure and opacity mean it has been hard for lenders to assess how much risk there is to their capital....
...counterparties over the past several quarters”....
...Two weeks ago, IMF head Kristalina Georgieva warned that this was putting Ukraine’s impressive economic recovery at risk....
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