Journal Article

Over-the-counter swaps – before and after reform

Abstract: Now that the main elements of the new regulations can be described, let?s see how a simplified trade would be typically carried out by a fictional set of institutions both before and after the reform.3 First Bank is a large dealer bank that buys and sells securities and derivatives. High Yield (HY) is a mutual fund that has a large portfolio of junk bonds. HY wants to hedge against the risk of a downturn in the junk bond market.

Keywords: Reform; Over-the-counter swaps; Credit default swaps; Regulations;

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Banking Policy Review

Publication Date: 2015

Issue: Q4

Pages: 1-5