The only alternative for LTC writers who want to shrink their existing exposures and reinsure their business is to go to lower or non-rated reinsurers, bringing its own risks, specifically, counterparty
In March 2017, the SECC capped the number of central counterparty
licences at four, claiming that was a sufficient number in order to satisfy current demand.
CHANGE IN COUNTERPARTY
RATINGS: The long-term rating on the Indiana Bond Bank gas revenue bonds will continue to be determined by Fitch's assessment of the transaction structure, the role of each counterparty
in the structure and their credit quality.
Moody's added that after it applied its "advanced loss given failure analysis" to determine the counterparty
risk assessment, "the cushion provided to obligations captured by the counterparty
risk assessment bymore junior liabilities accounts for around 19 per cent of RCB Bank's tangibleassets".
Therefore, a counterparty
cannot assume that a Kuwaiti counterparty
's entry into an ISDA transaction is in the ordinary course of its business.
Thus, Moody's CR Assessment is an opinion of the counterparty
risk related to a bank's covered bonds, contractual performance obligations (servicing), derivatives (e.g., swaps), letters of credit, guarantees and liquidity facilities.
- Short Term Counterparty
Risk Assessment: Prime-2 (cr)
"We affirmed the long- and short-term counterparty
credit ratings and maintained a stable outlook on ForteBank JSC (formerly known as Alliance Bank JSC), KazInvestBank, and Kazakh Agrarian Credit Corp.
Intended for researchers and graduate students in financial mathematics, this volume offers "an analytical basis for the quantitative methodology of dynamic valuation, mitigation and hedging of bilateral counterparty
risk on OTC derivative contracts under funding constraints" (from the preface).
Acharya and Bisin (2014) emphasize that the risk that one's counterparty
will not fulfill its obligation needs to be evaluated at the time a CDS is contracted.
Central Counterparties (CCPs) have played an integral role in reducing counterparty
risk over the past few decades by guaranteeing the settlement of trades on exchanges.