| Description |
1 online resource (15 pages) : illustrations |
| Series |
IMF working paper ; WP/09/173 |
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IMF working paper ; WP/09/173.
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| Contents |
I. Introduction; II. Counterparty Risk; Figures; 1. Illustrative Repricing of Derivatives When a Large Financial Institution Fails; III. The Changing Profile of Counterparty Risk in the United States; IV. The Adverse Impact of Counterparty Risk on Global Liquidity; 2. Counterparty Liabilities of Major U.S. Banks; Tables; 1. Snapshot of Reduced Collateral Posting Among LCFIs; 2. Securities Lending by Major Custodians; V. Regulatory Thrust for a Central Counterparty; 3. Cash Holding by Major LCFIs; VI. Conclusions and Policy Implications; Appendixes |
| Summary |
Counterparty risk in the United States stemming from exposures to OTC derivatives payables (after netting) is now concentrated in five banks?Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley and Citi. This note analyzes how such risks have shifted over the past year. We estimate that the adverse impact of counterparty risk on high-grade collateral flows and global liquidity due to decrease in rehypothecation, reduced securities lending, and hoarding of cash by major banks is at least 5 trillion. In order to mitigate counterparty risk, there have been regulatory initiatives to establish |
| Bibliography |
Includes bibliographical references |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
English |
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Print version record |
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digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL |
| Subject |
Credit -- Risk assessment
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Risk management -- United States
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Banks and banking -- United States.
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Finance -- United States.
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Risk management
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Banks and banking
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Finance
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United States
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| Form |
Electronic book
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| Author |
Aitken, James, author
|
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International Monetary Fund. Monetary and Capital Markets Department.
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| ISBN |
1462364845 |
|
9781462364848 |
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1452774285 |
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9781452774282 |
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1451873204 |
|
9781451873207 |
|
1282843850 |
|
9781282843851 |
|
9786612843853 |
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6612843853 |
|
