Negative Eonia rate causes CSA headaches

Banks look for clarity on collateral interest payments

redarrow
Eonia rates are now negative

Correction, 17 Sep 2014: The original version of this story stated incorrectly that Isda's negative interest protocol does not distinguish between one- and two-way CSAs. The article has been amended.

Derivatives market participants have been scrambling to clarify and modify the terms of their collateralised trades after Eonia - the rate commonly paid on euro-denominated collateral - fell into negative territory late last month.

Eonia dropped to -0.004% on August 28 and then to -0.007% on Septemb

To continue reading...

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 indvidual account here: