Industries : SWFs, Pension Funds, Banking Financial Service, Insurance Reinsurance & Brokerage ]

It’s extreme important today across locations who needs to comply with international accounting systems is the investor, when calculation a counterparty risk adjustment, considers itself to be default-free. This can be either an unrealistic assumption or an approximation for the case when the counterparty has a much higher default probability than the investor.

Investment can be any line of business (such as Energy production or SWFs or Pension Funds). Perspective is that, “debt” can be avoided (theoretically) by using a new numeraire. There are issues since it would need other statistical data. So the absence of the debt volatility is a big missing point. New measure allows using mark to market for the liabilities. In this way the value of the debt becomes a function of the default probability.

In order to create unmatched deliverables RsRL tries to avoid regulatory risk at the beginning (which is at the time of inception of the project), RsRL risk mitigation strategies are through the following domains:

o Assessment of liquidity (mark to market or valuation marked)
o Calculation of Time to liquidation and residual
o Share of portfolio exchange traded versus OTC traded and decomposition in the number and types of counterparties
o Custodial banks, diversification. Incidence and importance of other non-custodial activities and risk to the custodial ones
o Diversification of custodial themselves