Pension funds and insurers are avoiding cleared inflation swaps because they lack the collateral and liquidity to meet intraday margin calls. Low benchmark interest rates have forced liability-driven investors into illiquid investments, such as infrastructure and real-estate loans, which offer higher yields than government bonds, according to speakers at the Buy-side Risk conference in London on April 15.
"There's been a hunt for yield. Bank disintermediation has happened – coincidentally, maybe
The week on Risk.net, July 7-13, 2018Receive this by email