Nevada Copper Corp NEVDQ

RE:"Grandmother, what big derivatives you have."

[bogfit]

LONDON, Dec 5 (Reuters) - The Bank for International Settlements (BIS) has warned that pension funds and other 'non-bank' financial firms now have more than $80 trillion of hidden, off-balance sheet dollar debt in the form of FX swaps.  Its main warning though was what it described as the FX swap debt "blind spot" that risked leaving policymakers in a "fog". 

The $80 trillion-plus "hidden" debt estimate exceeds the stocks of dollar Treasury bills, repo and commercial paper combined, the BIS said, while the churn of deals was almost $5 trillion per day in April, two thirds of daily global FX turnover.  For both non-U.S. banks and non-U.S. 'non-banks' such as pension funds, dollar obligations from FX swaps are now double their on-balance sheet dollar debt, it estimated.
 
"The missing dollar debt from FX swaps/forwards and currency swaps is huge," the Switzerland-based institution said, describing the lack of direct information about the scale and location of the problems as the key issue.  The amount at risk represents about one third of total deliverable FX turnover and is up from $1.9 trillion from three years earlier when the last FX survey was carried out.  FX trading also continues to shift away from multilateral trading platforms towards "less visible" venues hindering policymakers "from appropriately monitoring FX markets," it said.
 
The bank's Head of Research and Economic Adviser Hyun Song Shin, meanwhile, described the recent crypto market problems such as the collapse of the FTX exchange and stable coins TerraUSD and Luna as having similar characteristics to most banking crashes.  He described many of the crypto coins sold as "DINO - decentralised in name only" and that most of their related activities took place through traditional intermediaries.

"This is people taking in deposits essentially in unregulated banks," Shin said, adding it was largely about the unravelling of large leverage and maturity mismatches, just like during the financial crash over a decade ago. 
 
https://www.reuters.com/markets/currencies/global-markets-bis-urgent-2022-12-05/
 
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