10 Sep 2013

More Swaps, more Risks

Glad to see that another swap market (Chinese Yuan) seems to be in rude health, but nearly all swaps are facilitated by a bank acting as counterparty - and are these risks not contrary to what current regulatory efforts want to achieve? If some regulators advocate a move to a leverage ratio of 10 where does that leave the gazillions of over-the-counter swaps?