The unintended consequences of the UFR

Over the past six months, Dutch pension reform has had an impact on the shape of the interest rate swap curve from the 15-year point onwards. With a compromise solution now on the table, traders say some certainty should return – but what does it mean for the long end of the curve? By Lukas Becker

adam-kurpiel

Bankers have been muttering darkly about the unintended consequences of new regulation for some time. A requirement to clear over-the-counter derivatives trades, combined with new rules on bank capital and liquidity, will have far-reaching consequences that some regulators may not have initially considered, they claim – from a squeeze on high-quality collateral to a reduction in corporate hedging activity. To illustrate their argument, some participants point to a recent, seemingly innocuous

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here