Concentration, liquidity, net exposure for dealer BHCs
Source: FRBSF

 

Today’s chart comes from a research letter by the Federal Reserve Bank of San Francisco. The letter, “Bank Counterparties and Collateral Usage,” examines the relationships between bank-holding companies and their trading partners in the over-the-counter derivatives markets. The chart focuses on concentration, liquidity and net exposure to derivatives.

Continues here

 

Category: Derivatives

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One Response to “Bank Holding Companies: Exposure, Risk and Derivatives”

  1. farmera1 says:

    So is the country better off since the crisis??? Is there less counter party risk?? Is the amount of derivatives lower than the insane levels ($60 trillion or so as I recall) before the crisis???

    I’m just trying to figure out if there is less stupidity and leverage (I would call writing insurance policies with no hope of paying them off leverage) in the “system”.