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Here are two types of counterparties you should negotiate with, even when it seems difficult.
One way to pinpoint a bank's vulnerability — whether to a single financial asset class, counterparty or type of financing — would be to turn the stress test on its head and identify any icebergs that could sink it.
But if CSX wins, it will likely be on the unique facts of this case, based on CSX's allegation that TCI had some type of arrangement with the swap counterparties to vote the hedging CSX shares.
This year the direction of counterparty risk has reversed.
Credit Derivatives Research compiles an index (see chart) of counterparty risk.
Futures markets get rid of counterparty risk, or essentially get rid of it.
The amount of counterparty risk in the system will be reduced greatly by central clearing-houses for credit-default swaps.
One reason is the broad threat of "counterparty risk"—the possibility that a seller or buyer cannot meet its obligations.
Exchanges present unusual levels of counterparty risk.
Sounds like a lot of counterparty risk.
It is the inadequately understood phenomenon of counterparty risk.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com