23 min read 21 Nov 19
Summary: In order to meet (and increasingly exceed) the capital requirements set out by the regulators, banks have had to focus on reducing the asset size of their balance sheet. By entering into ‘risk-sharing’ transactions, banks can achieve much-needed capital relief. This paper explains how the different types of trades work in practice.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.