Derivatives reforms raise concerns among experts

A group of securitization industry representatives have expressed concerns that proposed rules that would places on risk-taking by banks could result in reduced liquidity and could raise the cost of credit, according to the Financial Times.

The paper cited a recent study the consulting firm of Oliver Wyman, that contended investors in US  corporate bonds  could suffer a $315bn paper loss as a result of decreased liquidity.

Read the full Oliver Wyman study and a related study on the impact of the Volcker rule conducted by Darrell Duffie of Stanford University.

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