Cost of credit no longer about the end-client, panellists say
Instead, it reflects the cost of major participants taking risk amongst themselves due to margin rules
The raft of regulatory changes and arrival of uncleared margin rules have caused dealers to view the pricing of credit as the cost of risk between the largest banks, rather than the creditworthiness or size of the end-client, panellists said at the 16th FX Week Europe conference in London.
“It’s important to look at how the cost of credit has changed. It’s not about the end-user any more, but the cost of major participants taking risk among each other, which is becoming incredibly expensive,”
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