Historical series Itaú Unibanco performs its first credit derivative operation
São Paulo, June 2, 2023 – Itaú Unibanco concluded, on June 1st, its first credit derivative transaction, as the CMN Resolution 5070 came into effect and B3 accepted registration of the instrument. The operation was carried out in accordance with the resolution of April this year, which established the modalities, conditions, and procedures for credit derivative transactions in the country.
Since this standard was published, Itaú Unibanco has worked to carry out an operation on the first day of effect, as it believes that this instrument will be important to help develop the country’s credit and capital markets. “Over time, we understand that this product will be widely used by the market, both via bank treasuries and by assets, to manage the credit risk of their portfolios,” says Luciano Diaferia, Products Superintendent at Itaú Unibanco.
Credit derivatives are financial instruments that allow one of the parties to hedge against the risk of default of a debt issuer or to assume the risk of variation in the credit quality of a company or financial institution. By entering into this type of operation one can obtain, for example, protection against the default or late payment of credit security such as a debenture or a bond.