Latest articles from Derivatives & Structured Products

Acceptance

EU’s relaxed approach opens transatlantic liquidity gap

The EU has introduced a liquidity coverage ratio for banks that is noticeably weaker than its US equivalent.

A way to reduce the margining burden of derivatives clearing

The netting of swap payments against variation margin would reduce liquidity requirements in cleared transactions, according to clearing house risk expert Stephen Elliott.

Finding a better approach to global regulatory coordination

Kenneth E Bentsen, the head of one of the industry's largest trade associations says international regulatory bodies need to do more to ensure coordination between national regulators on the construction and timetable of rulebooks for global derivatives markets.

New environment forces change in the world of structured products

Low volatility and low yields are making life tricky for structured product providers. But by broadening their range of products and by doing more to tap upcoming markets, such as Asia, they have been able to ensure they get plenty of business. 

Investors face fresh interest rate challenge

Investors face fresh interest rate challenge

Since interest rates dropped to record lows in both the US and UK, investors have been anticipating their rebound and picking their investments accordingly.

Banks adapt to the new world of structured finance

New regulations are having a profound impact on structured finance and securitisation markets. But the bigger banks are mostly coping, with some even exploiting the situation to build their investor-advisory services.

Index-based structured products on the rise

Index-based structured products have grown in popularity since the financial crisis, as investors have sought flexible and bespoke ways to gain exposure to certain assets. And while the threat of tougher regulation looms, bankers are confident it will not slow down the market. 

Regulators lost for words

Regulators struggling to define what activities are covered by hugely detailed new rules governing financial markets might do better by returning to first principles.

Basel’s trading book theory struggles with the practice

The fundamental review of the trading book set out to simplify the capital management of market risk, but has ended up drifting away from the reality of the business.

Structured products search for the right balance

The impact of low interest rates, new EU regulations and the predicted lessening of quantitative easing in Europe and the US mean structured product providers are being called upon to provide innovative solutions to reduce risk in both retail and private banking. 

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