Banks Focus On Reducing CDS Risk

Banks in the U.S. and Europe have been focusing on ways to reduce maturity mismatches in their portfolios of credit default swaps, reports Financial Times.

Banks in the U.S. and Europe have been focusing on ways to reduce maturity mismatches in their portfolios of credit default swaps. To accomplish this, services such as those offered by ReMATCH, a unit of Icap, take dealers’ older long and short trades and pool them according to maturity, which are then executed at a mid price. This helps reduce banks’ risk, according to ReMATCH.

Click here to read the story from The Financial Times