Derivatives and Risk Management Made Simple
Over the last 10 years, UK pension funds have increased their usage of derivatives as they focus on managing the risks associated with liabilities.
As derivative strategies have become more commonplace, risk regulation has tightened. A number of EU and OECD directives and guidelines have been issued requiring all counterparties with derivative contracts to report the details of them to a trade repository. The regulatory trend towards greater data transparency and governance is also growing.
This guide, sponsored by J.P. Morgan has been designed for UK pension funds to introduce:
- Exchange-traded and over-the-counter derivative instruments – their uses and relative benefits
- Market and counterparty credit risks
- Risk methodologies – how to calculate, interpret and apply them