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Following the RBI's new standards, State Bank of India (SBI) and Standard Chartered Bank India executed a Rupees 25 crore Credit Default Swap (CDS) exchange. This represents a significant shift in the financial sector, notably in credit risk management.
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Landmark CDS Trade: SBI And Standard Chartered Embraced New RBI Norms DESCRIPTION Following the RBI's new standards, State Bank of India (SBI) and Standard Chartered Bank India executed a Rupees 25 crore Credit Default Swap (CDS) exchange. This represents a significant shift in the financial sector, notably in credit risk management. Transaction Overview ● Senior executives at Standard Chartered Bank acknowledged that the trade comprised a 1-year rupee CDS featuring REC. Industry Insight “This landmark transaction marks a pivotal moment in credit risk management and underscores the growing sophistication of financial instruments in the Indian market,” stated Parul Mittal Sinha, Head of Financial Markets, India, at Standard Chartered Bank. Understanding Credit Default Swaps ● Credit default swaps are derivative securities meant to provide insurance against a bond issuer's risk of default. ● This structured method provides a clear summary of the news, with separate sub-headers for each component of the transaction and its repercussions. Welcome to Notopedia.com, your free learning platform that caters to the diverse needs of students and aspirants across a spectrum of entrance exams and educational endeavors. Whether you're preparing
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