European funds will grow as banks keep pulling back, says Moody’s

Tuesday, July 14, 2015

Reports from US ratings agency argues European banks will move from hedging to selling assets

TAGS: Direct lending Research Distressed debt

Comment by: Anonymous. Posted 8 years ago [2015-07-14 23:44:26]

If European banks have been "using derivatives to de-risk their holdings," then there has been a constituency selling that derivative protection that has not been "starved of assets to buy." I'm not trying to over-think this. Rather, I say simply that if the banks have truly been transferring risk outside the banking system through legitimate hedging (not just regulatory games), then this point should be clear.

Related Stories

Funds

more stories...