Swap business faces up to collateral crunch

Louise Bowman
Published on:

Talk to some DCM bankers about how lucrative their swaps business used to be and they can get rather misty-eyed. “I did a three-year trade a few years ago where we made €22 million on the swap alone,” muses one wistfully. Those days are over, however, and the changes that are taking place in swap provision could be set to hit fee revenue in DCM more than anything else.