1.

Record Nr.

UNINA9910464006703321

Autore

Singh Manmohan <1964->

Titolo

Counterparty risk, impact on collateral flows, and role for central counterparties [[electronic resource] /] / prepared by Manmohan Singh and James Aitken

Pubbl/distr/stampa

[Washington, D.C.], : International Monetary Fund, c2009

ISBN

1-4623-6484-5

1-4527-7428-5

1-4518-7320-4

1-282-84385-0

9786612843853

Descrizione fisica

1 online resource (17 p.)

Collana

IMF working paper ; ; WP/09/173

Altri autori (Persone)

AitkenJames

Disciplina

332.63232

Soggetti

Credit - Risk assessment

Risk management - United States

Banks and banking - United States

Finance - United States

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

At head of title: Monetary and Capital Markets Department.

"August 2009."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

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

1. Methodological Issues in Computing Connectedness in Counterparty RiskReferences

Sommario/riassunto

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