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The most obvious reason for emphasis on wholesale credit risk is because the term "wholesale" is linked to the Basel model taxonomy. According to Basel Accord type capital adequacy standards, a bank must group its exposures into four categories to calculate credit risk-weighted assets. The Federal Reserve lists those categories as wholesale, retail, ...


It depends on how one is thinking about the hedge. One might be thinking of it as A hedge against catastrophic risk (default of the issuer), or A hedge against changes in (market-implied) default intensity or hazard rate In the former case, which seems to be how you are considering it, the hedge is a static hedge, kept for up to 5 years, and insulates ...

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