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
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
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 print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Markets
PGGM sees a chance to diversify with fourth-trigger CDSs
Dutch pension manager hopes bank demand will continue to grow for derivatives counterparty credit protection
How Quoniam boosted its sentiment strategy by adding an LLM
Upgraded system creates scores from more-informative forward-looking parts of news
The changing shape of fixed income trading
As volumes surge and electronification spreads, trading desks are rethinking how they access liquidity and the technology that supports it
Canton: has Wall Street found its blockchain?
Network and privacy behind Digital Asset spin-off’s tilt at next-gen settlement
NSE chief blames algos for India closing auction turmoil
Ashishkumar Chauhan said traders should retrain algos instead of asking Sebi to change closing auction
AI bond deluge tests credit market’s appetite
Credit strategists say multi-year, poorly telegraphed AI issuance strains investor portfolios
NDF algo innovation rises as internal matching builds
Banks bolster offerings with new EM pairs and improved execution quality, in bid to increase internalisation
Japan’s Great Repatriation? Don’t count on quick returns
Switch from Treasuries to JGBs by GPIF likely to be gradual, which may spell more bad news for hedge funds
