Losing Sleep Over Banks

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Looking futures

QUESTION:

Hello Martin,

If i have exposure to various banking counterparties in europe – what do i do from running a fund mgmt business as i m a bearish on banks….but i cant shut my business as i m fearful of banks…..what do you advise….how can one hedge or think about getting away from this risk?

This is really keeping me up at night.

tks again

ANSWER: Yes, you could also use Bank of New York, which is just a custodian; National Australia Bank or Macquarie are secondary choices.Ā Alternatively, you could use the REPO market directly or use one of the clearers via the Tri-Party agreements! He could use a GMRA (Global Master Repo Agreement) and decide who his counterparties can be (i.e. Pimco, Easyjet etc.), but use the exchange as the mediator.

There is a company (Alixium – partĀ of the Tradition Brokerage Co) that has a web-based cash exchange, which I believe works onĀ similar principals but it is also possible to deposit GBP then change the criteria of capital andĀ accept X-Currency assets (USD, A$ etc).

There are lots of ways aroundā€¦ No need to lose sleep over this. I do like Bank of New York because it is a custodian and very conservative.