So from the credit exposure point of view, the derivatives portfolio is quite secure because it's either collateralized on a daily basis or managed as any other exposure to clients within our credit risk management policies.

Source: https://seekingalpha.com/article/4575262-banco-santander-chile-bsac-q4-2022-earnings-call-transcript?source=feed_all_articles

S&P made an identical reduction in 2011 in the aftermath of the collateralized mortgage debacle but later restored its top rating.

Source: https://www.twincities.com/2023/08/06/real-world-economics-consider-fitch-downgrade-to-be-a-warning/

That includes bank loans and collateralized loan obligations, which are floating-rate debt investments.

Source: https://seekingalpha.com/article/4590767-wdi-discount-remains-attractive-distribution-remains-covered-with-more-bumps?source=feed_all_articles

These investments are primarily funded through collateralized borrowings structured as repurchase agreements (repos).

Source: https://seekingalpha.com/article/4642339-agnc-investment-corp-not-passing-up-on-this-double-digit-yield?source=feed_all_articles

This means that BDC loans are collateralized, and their strategy of offering floating rates on lending while receiving fixed rates on loan liabilities will benefit greatly from the Fed's rate hike policy.

Source: https://seekingalpha.com/article/4594284-bizd-bdcs-standing-tall-against-headwinds?source=feed_all_articles