Pension funds face intraday margin calls from anxious clearers

Some banks stick with T+1 margin posting, but others balk at funding cost and counterparty risk

What is a clearing bank to do when some of its biggest customers become one of its biggest headaches? Large pension funds use huge volumes of interest rate swaps to hedge rates volatility, making them valuable clients for any trading desk. But they are now facing their first sustained cycle of rate rises since the advent of clearing mandates following the 2008 financial crisis.

In the UK, monetary tightening was compounded by alarm over fiscal policy to produce turbulence in gilt markets

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

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 individual account here: