FX structurers see mixed demand for cross-asset hedges

group-hands

Foreign exchange structuring desks are seeking to cash in on the increased cost of long-term hedging in the rates and credit markets that is resulting from new capital requirements by offering cheaper FX structured products to buy-side clients.

Basel III, which includes a credit valuation adjustment (CVA) capital charge for trades not cleared through central counterparties, means rates and credit trading will consume far more capital, and banks are passing on the costs to end users. While the FX

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: