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The Makings of a DeFi Credit Boom | Tushar Jain

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How Does This Work in Traditional Capital Markets?

How does this work in traditional capital markets? Right? I don't think you ever have a borrower who goes into a bank, and is like, i want to do a swap. Like, how does, how does this act? What are the mechanisms of how this works intraditional capital markets? Ritn ye, that's fairly accurate. A, basically, you have the, the banks managing two things here. You have the managing credit risk and rate risk, right? And frequently, you know, they will go ti, i can interest rate swap's desk, basically a group of traders within the bank that will hedge out some of that risk for the bank by saying, you

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