Lacking hedge, Europe\'s new bank bonds not for the fainthearted

El seguro de bonos y el mercado de derivados no se han adaptado totalmente dentro del eurosistema.
  • 01 Marzo 2017

Post-crisis rules designed to safeguard Europe’s financial system have left bank bond markets fragmented, exposing investors to more losses than ever.

The reason has to do with hedging, or rather the lack thereof. Banks are employing different approaches in different countries to meet more stringent capital requirements and many new securities aren’t explicitly covered by credit-default swap contracts, the method of insurance favored by bondholders.

Seguir leyendo