Publications
Publications
- September 1994 (Revised April 1995)
- HBS Case Collection
Banque Paribas: Paribas Derives Garantis
Abstract
In March 1993, the management of Paribas Capital Markets is making a final review of the proposal to set up Paribas Derives Garantis (PDG), a special-purpose subsidiary of Compagnie Financiere de Paribas (CFP), that would guarantee derivative products offered by Banque Paribas. The proposal is unique in a number of ways and CFP will be the first banking group to create such a subsidiary. The management of Paribas Capital Markets now has to present to the board of directors of CFP, Banque Paribas's parent, the logic for forming PDG, the structure of the subsidiary, and a justification for the required commitment of capital. In conjunction with Derivative Markets: Structure and Risks, can be used to explore the structure and risks of the OTC derivatives market, and in more detail, the creation of a triple-A subsidiary and credit risk management.
Keywords
Citation
Mason, Scott P., and Kuljot Singh. "Banque Paribas: Paribas Derives Garantis." Harvard Business School Case 295-008, September 1994. (Revised April 1995.)