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.
File(s): File format is application/pdf https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/business-review/2015/q4/bpr-over_the_counter_swaps.pdf
Provider: Federal Reserve Bank of Philadelphia
Part of Series: Banking Policy Review
Publication Date: 2015