Brisker business

Sovereign debt hedging

Will the European government debt management agencies eventually fulfil a role similar to that of the US mortgage agencies – providing large and consistent volumes of sophisticated interest rates derivatives business – in Europe? Derivatives dealers certainly hope so.

The signs are encouraging. Dealers say they are now doing brisk business with these entities, and the number of agencies is growing, as more EU members seek to better risk-manage their liabilities and conform to EU gover