Risk.net

Collateral requirements decreasing

The five largest interdealer exposures for the top 10 dealers averaged 10% of net derivatives exposure in 2006, compared with 14.5% in 2003, according to a recent Isda analysis of credit expposures among the largest derivatives dealers.Once collateral was taken into account, the net exposure figure dropped to 2% in 2006, compared with 1.2% in 2003.The report also found that the five largest exposures to a non-dealer counterparty - such as Fannie Mae, the World Bank or a hedge fund - among th