Isda AGM: collateral drops 20% with market rebound
As the markets recover from the crisis, counterparties are using much lower levels of collateral, an Isda survey has found.
The total amount of collateral in circulation across the derivatives market fell by 20% in 2009, according to the International Swaps and Derivatives Association's 2010 margin survey – released at the industry group's annual general meeting in San Francisco on April 23.
Collateral in circulation fell from $4 trillion in 2008 to just $3.2 trillion in 2009, according to the survey. Isda attributes the fall to declining counterparty risk and “a return to more normal interest-rate levels and credit
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