Valuation adjustments, both in terms of funding and margin, are incredibly important in global derivatives trades.
There are many advantages to using market-based credit analytics over ratings agency measures, including transparency, flexibility, reporting and disclosure.
It’s the season for investment banks to try to predict the future in credit markets. The ritual is trickier than usual this time.
The European Commission has recommended that industry groups representing the buyside, sellside and trading venues, including fintech firms, should issue guidance papers on good practices for electronic trading in corporate bond markets.
U.S. credit investors are blithely ignoring borrower- and sector-specific risks that endanger the bond bull market as the global business cycle enters its final stages.
The collateral requirement is one of the bedrocks of global regulatory efforts to curb risk in the market after swaps were blamed by lawmakers for fueling the financial crisis.
Collateral management has never been at the top of the agenda for corporate treasurers, but the situation has changed in the last five to seven years.
How can collateralization help mitigate counterparty risk in OTC derivative transactions?
Corporate treasurers face numerous headwinds in investing cash and funding their balance sheets, many brought on by post-crisis regulatory initiatives.
With auditors increasingly scrutinizing derivative valuations in terms of non-performance risk, understanding counterparty valuation adjustments is becoming a necessity for many corporate treasurers.