Non-US sovereigns should collateralise swaps, say US bank regulators

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All non-US sovereigns would be asked to start posting collateral on bilateral derivatives trades with US counterparties, under a new joint proposal from five US regulators - a radical attempt to change the status quo for sovereign derivatives users, many of which currently refuse to post collateral, despite the funding and capital costs this creates for dealers. "It is about time governments walk the walk - not just talk the talk. If we are all truly interested in reducing risk, then it makes