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Wall Street’s latest idea

By 9 Apr, 2013June 18th, 2018News

Financial Times

The Financial Times looks at the new business of collateral transformation, which many banks hope will boost profits at a time when new regulations and competitive pressures will hurt balance sheets.  However collateral transformation – which involves turning relatively risky assets into ostensibly safer ones – is already capturing the attention of regulators.

According to GreySpark, this not a new idea, it’s a new way of packaging, with speculation that this business will look like repo business. They point out that this going to end up with a new  industry built around the regulations that may unintentionally make where the risk actually lies less transparent.

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