No cure through the cycle

Some have argued that the antidote for pro-cyclicality in the Basel II capital requirements is theuse of ‘through-the-cycle’ estimates of default and recovery rates. David Rowe argues that, whilethis might mitigate the pro-cyclical impact of the Accord, it would also introduce unacceptablevagueness into the estimates and seriously undermine the basis for back-testing and verification

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Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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