Explanation:
Option D is the least likely problem because:
Therefore, D is the least likely problem as it describes a feature that doesn't exist in bilateral clearing arrangements.
Ultimate access to all questions.
Which of the following statements least likely describe a problem with bilaterally cleared over-the-counter (OTC) derivatives trades?
A
The defaults of individual counterparties could lead to systemic problems.
B
Bilateral OTC derivatives are often non-standard with exotic features.
C
Closing out trades may be difficult.
D
Loss mutualization may not spread all the losses among participants.
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