UK pension funds rush to dirty CSAs

Fearing margin pain once BoE gilt-buying ends, funds fast-track revisions to post gilts and corporate bonds

City-of-London

In preparation for further margin calls, some UK pension funds are rushing to amend bilateral collateral agreements to temporarily allow them to post gilts and corporate bonds before the Bank of England ends its gilt-buying programme on October 14.

Fearing gilt yields will rise again once the BoE’s programme comes to an end, delivering more margin call pressure on derivatives portfolios, a trader at one large UK pension fund says it is waiting for documents it hopes to finalise this week which

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