The losses suffered by several banks active in global markets from their structured equity derivatives operations in Q1 2020 has highlighted ‘the vulnerability of these complex products to prolonged market dislocation’ despite better risk management, according to Fitch Ratings.

Banks mainly focused on structured products, including French banks BNP Paribas, Natixis (Groupe BPCE) and Société Générale, and several Canadian banks were among the most affected, whereas European and US banks ‘with more diversified equity capital market franchises and active in cash brokerage and flows’ didn’t see as much impact. Fitch does not view losses suffered by French banks in Q1 20 as evidence of risk management problems. ‘They wer

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