Net exposure


Net exposure
Figure calculated by banks to express potential losses once due consideration has been given to hedging and other forms of risk protection. These can include derivatives such as credit default swaps (CDSs) and debt insurance contracts. American banks have started to provide growing data on their exposure to the European sovereign debt crisis, disclosing both gross and net exposure. The effectiveness of some risk protection measures adopted, such as CDSs, is nonetheless considered doubtful.
Gruppo Banca IFIS
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