Loading ...Derivatives
In the GFC of 2008, I learned the term Interest Rate Derivatives, apart from CDOs on MBS.
Just a simple thought here … were the outstanding Interest Rate Derivatives bets shrunk with the Covid bailouts? If not, which TBTF banks have what exposure?
Would these exposed banks not be on the verge of collapse now as interest rates have skyrocketed?
GL
Some of those banks may be stupidly exposed(seems like every cycle there are always some) but the FED telegraphed and took their time purposely, so the banks and other financial institutions could adjust their holdings.
So does that mean, that all those derivatives expired?
I tend to think that it is not possible that the greedy Wall Street bankers who came up with these “instruments” are suddenly not greedy any more.
Of course all these notional sums of trillions of these derivatives are not really documented anywhere.