Risk USA 2003: Loan managers increasingly rely on credit derivatives, says CIBC's Bennett

Stephen Bennett, global head of portfolio management at Canadian Imperial Bank of Commerce (CIBC), believes credit derivatives are playing an increasingly important role in the loan market, both as hedging instruments and by helping facilitate mark-to-market and mark-to-model valuations.

Bennett, who was speaking at Risk magazine's ninth annual Risk USA conference in Boston today, said most loan managers are now beginning to move beyond simply "chopping the tall trees" - removing or mitigating against large credit risk concentrations.

Improved liquidity in the credit default swaps (CDS) market is producing opportunities for more sophisticated trading opportunities, such as basis trades, for example. Bennett recounted a recent opportunity where selling $10 million worth of one

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

The changing shape of risk

S&P Global Market Intelligence’s head of credit and risk solutions reveals how firms are adjusting their strategies and capabilities to embrace a more holistic view of risk

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 individual account here