15  P. Angelini, S. Neri and F. Panetta, “Monetary and macroprudential policies,” Banca d’Italia, Working Papers, 801, March 2011 (http://www.bancaditalia.it/pubblicazioni/econo/temidi/td11/td801_11/td_801/tema_801.pdf). See also P. Angelini, S. Nicoletti-Altimari and I. Visco, “Macroprudential, microprudential and monetary policies: conflicts, complementarities and trade-offs”, in A. Dombret and O. Lucius (eds.
Overall, derivatives are mainly a zero sum game: one counterparty’s market loss is the other counterparty’s market gain. Counterparty credit exposures on OTC derivatives are a different issue and the source of much of the systemic concerns. Such losses rose to record levels in the third quarter of 1998. Nonetheless, the rate of loss remained well below that on banks’ loan portfolios.