7 Unconventional Strategies to Bulletproof Counterparty Liquidity in Swaps Market
The swaps market, a cornerstone of modern risk management, faces significant counterparty risk due to its over-the-counter nature. While standard mitigation techniques like collateral and netting are widely used, today's volatile markets demand more robust solutions.
Seven unconventional strategies are emerging to strengthen counterparty liquidity resilience. These approaches MOVE beyond basic credit checks and administrative procedures, addressing the acute risks posed by rapidly shifting exposures in interest rate, currency, and commodity swaps.