BIS announces a fall in banks’ derivatives positions
The positive market value of banks’ derivatives positions fell by $214 billion in three months last year, as banks became warier of leverage.
The Bank of International Settlements’ (BIS) provisional international banking statistics released last week showed banks’ total derivatives positions valued at $2.13 trillion at the end of June 2006, down from $2.35 trillion at the end of September.
Kenneth Broux, an economist at Lloyds TSB Financial Markets, said this was a substantial drop and could reflect the market peaking and risk aversion increasing, as many institutional and sovereign players became more leveraged and aware of the risk
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