Collateral
CFTC commisioners express misgivings over Dodd-Frank rule-making
Senior regulators reveal "concern" over segregation of margin and swap data repositories
Market endorses 'elegant' CFTC proposal on margin
Legally segregated/operationally commingled approach to margin segregation attracts praise from buy- and sell-side.
Lehman opts to settle over Dante flip-clause transactions
Trustees relieved as settlement looks imminent
Concern over scarcity of high-quality assets forces CCPs to broaden eligible collateral
Ice Clear Europe accepts gold for margin, while LCH.Clearnet is also working on extending eligible collateral
Insurers, not banks, driving liquidity trade
Insurance sector's hunger for high yields, rather than banks' thirst for short-term funding, driving liquidity trade
Dealer concern over proposed change to client margin segregation
Ice Trust estimates it might have to increase initial margin by 63% to cover risk.
A liquid market – banks tap insurers' liquidity reserves
A liquid market
Pension funds worried about CCP margin
Margin hunters
Funding needs drive banks to “borrow” liquidity from insurers and pension funds
Insurers and pension funds offer banks a lower-cost solution to their funding issues
Cash variation margin requirements worry pension funds
Having to post cash as variation margin to central counterparties (CCPs) will cause substantial yield losses for pension funds that conduct liability-driven investment (LDI) strategies, according to fund managers.
Risk South Africa Rankings 2010
Neck and neck
Transparency needed over securities lending in ETFs
iShares says it is looking at how it can improve transparency around securities lending
Banks gear up for client clearing
A clear choice
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Ban on rehypothecation could increase derivatives costs
A number of hedge funds are now insisting margin posted on derivatives trades is not rehypothecated – a trend that could drive up costs
Rehypothecation dilemma
Rehypothecation dilemma
Total return swaps – pension funds seek security in uncertain markets
Many happy returns
Deutsches Risk Rankings 2010: Deutsche Bank top again
Confusion, then clarity
Costs could deter hedge funds from learning Lehman lessons
Cutting counterparty risk has a price tag that might prevent smaller funds from changing their ways, experts fear
ECB’s González-Páramo highlights flaws in collateral framework
European Central Bank executive board member José Manuel González-Páramo acknowledges risks in central bank’s willingness to accept broad range of collateral
Axa IM to lend funds secured by ABS
The essential ABS
US municipalities wary of two-way CSAa
Cornered on collateral
The end for one-way CSAs
Sovereign derivatives users have been able to avoid posting collateral to their dealer counterparties in the past, but pending reforms to bank capital and funding rules are changing the equation. If sovereigns refuse to budge, they will have to accept…