Irish Bank Considers Buying Credit Protection

GLOBALCAPITAL INTERNATIONAL LIMITED, a company

incorporated in England and Wales (company number 15236213),

having its registered office at 4 Bouverie Street, London, UK, EC4Y 8AX

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement | Event Participant Terms & Conditions

Irish Bank Considers Buying Credit Protection

Bank of Ireland is looking at using credit derivatives to systematically hedge its credit exposure for the first time. The bank is considering buying protection to hedge 0-20% risk weighted assets, such as government bonds and bank paper, according to Kevin Twomey, an official in the bank's treasury.

The bank has used less than a handful of credit derivatives in the past and is looking at extending that because of the growth of the default swap market, said Twomey. He predicted the bank would make a decision in the coming four months as it gathers more information, but declined further comment.

Related articles

Gift this article