South African corporates expect to sign CSAs

In a bid to bring down the cost of their hedges, power giant Eskom and South African Airways may sign collateral agreements with their dealers

South African corporates – including giant state-owned power utility, Eskom – expect to start posting collateral when trading over-the-counter derivatives, in a bid to bring down the cost of hedging.

Speaking at the Risk & Return South Africa conference in Cape Town last week, representatives from Eskom and South African Airways both said they were seriously considering signing credit support