Recovery Risk Arising from Borrowers and Declines in Collateral Prices
First written in FY2017. 2 of 4 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2025.
0 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「During the transaction period, we control exposure by marking positions to market daily and appropriately making margin calls, meaning the payment or receipt of the difference between cash collateral and the market value of bonds.」
For bond repo, gensaki and other transactions, specific measures were established to control exposure to falling collateral values and counterparties through daily mark-to-market valuation, margin calls, haircuts and the use of relatively highly creditworthy financial institutions and central counterparties. - FY2025-H1MitigatedAnnual report
「During the transaction period, we control exposure by marking positions to market daily and appropriately making margin calls, meaning the payment or receipt of the difference between cash collateral and the market value of bonds.」
For bond repo and gensaki transactions, specific measures were described to control exposure and credit risk arising from counterparties and collateral price movements through daily mark-to-market valuation, margin calls and the use of relatively highly creditworthy financial institutions and central counterparties. - FY2018RestatedAnnual report
「If a counterparty's financial condition deteriorates sharply and the price of shares or other securities accepted as collateral falls more than expected, the Company may be unable to collect its loan receivables.」
The Company continues to recognise collection risk arising from deterioration in counterparties and falling collateral values, and conducts internal ratings, credit risk measurement, stress testing and daily mark-to-market valuation of collateral. - FY2017First statedAnnual report
「If a counterparty's financial condition deteriorates sharply and the price of shares or other securities accepted as collateral falls more than expected, the Company may be unable to collect its loan receivables.」
The Company manages this risk using highly liquid securities collateral, internal ratings, credit risk measurement, stress testing and self-assessment, while recognising the risk of being unable to collect due to deterioration in counterparties or falling collateral values.