Collateral could add billions to European debt figures
Dealers fear sovereign clients will resist calls to start posting collateral because of the impact it could have on their national debt figures – a headache for dealers, which are lobbying fiercely for two-way posting because of the funding, credit and capital costs associated with existing one-way agreements. The Belgian Debt Agency, for one, is reluctant to budge because of concerns collateral calls could overwhelm its available pool of assets, forcing it into the market to raise funds and
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