With the pronounced market volatility that is sometimes reminiscent of the period following the bankruptcy of Lehman Brothers in September 2008, the question of how to execute hedging instruments using OTC derivatives is particularly deserving of careful consideration.
Introduction
In the context of the reversal of the main central banks’ monetary policies, the Bank of England’s emergency intervention to prevent the collapse of the British government bond market in late September 2022 led to a convulsion of violently shifting interest and exchange rates during this period.
