A combination of interest-rate risk transfer mechanisms through market products such as interest-rate derivatives (swaps, in particular) and securitized products such as collateralized loan obligations (CLOs) will spring about, provided banks indeed have to manage the interest rate risk rather than have it as a matter of convenience to pass it onto borrowers.
I myself already addressed the issue of bubbles and financial crises in the opening remark at the previous year’s conference. 1 This year, through this third lens, I find myself left with no choice but to refer to the repercussions of a natural disaster.