The Interrelationship Between Futures Contracts and Credit Risk: Analytical study for Royal Bank of Canada
Keywords:
Futures Contracts, Hedge, Credit Risk, Royal Bank of CanadaAbstract
This paper reviews the importance of using futures contracts to hedge against credit risk. According to this trend, the financial market of Australia was chosen as a research community because of the presence of a large number of transactions for derivative financial instruments, and it was found that the best sample for research is the Royal Bank of Canada (RBC) due to the availability of the necessary data for the application of the current research for the period (2010-2020) the study reached to a set of conclusions the most significant is the possibility of using futures contracts as tools for hedging of credit risk. It also recommended the need to adopt financial engineering tools, especially futures contracts, to reduce credit risks in the Iraqi banking sector in line with the nature of the country's economic situation
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Copyright (c) 2022 Dr. Mohammed S. Ahmed
This work is licensed under a Creative Commons Attribution 4.0 International License.
