Loading ...and saw this comment…..seems the City/Banksters never learn.
PS i hear this all the time where I work.
“Yes we have mitigated this risk through hedging. We have booked X swaps and have a line of credit with Y”
“Hmmmm who are the swaps with”
“Goldies”
“In extreme market stress will Goldies settle those hedges?”
“Mmmmm dunno”
“Do you think the l/c will be honoured”
“Mmmmm dunno”
“Well you haven’t mitigated the risk have you…..”
“But but this will never happen”
“Dude I was there in 2008….”