The introduction of total return swaps (TRS) broadens the Mexican lender's risk management toolkit and builds on a series of product and market infrastructure initiatives undertaken since 2019.
Banorte (Banco Mercantil del Norte), the flagship banking subsidiary of Mexico’s Grupo Financiero Banorte, has become the first bank in Mexico to implement TRS following regulatory approval. The bank said it has introduced 19 product lines and market infrastructure initiatives since 2019 The move marks a development in Mexico's derivatives market and provides Banorte with an additional tool for balance sheet optimisation, risk and capital management. TRS enable the economic perf