What's hot: betting on the direction of interest rates. What'snot: wagering on corporate defaults.
The trend may explain why Bank of America Corp.'s Kavi Gupta,who headed a U.S. group trading credit-derivatives indexes, changedroles. In March, he switched to lead interest-rate swaps trading inthe region, according to two people with knowledge of thematter.
Rate derivatives have become more popular than ever for wageringon whether borrowing costs will rise or fall as the Federal Reservescales back its unprecedented stimulus. The amount ofover-the-counter interest-rate swaps has swelled 30 percent sincethe end of 2009, to a record notional $584.4 trillion as ofDecember, according to a May 23 CME Group Inc. report.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
