Portuguese debt office agrees to post collateral to its dealers

Agency becomes one of first developed-market sovereigns to succumb to dealer pressure as costs of one-way collateral postings grow

portugal flag

The Portuguese debt office is set to become one of the first big sovereign derivatives users to bow to dealer pressure and agree to two-way collateral postings. The change means the Instituto de Gestão da Tesouraria e do Crédito Público (IGCP) will begin posting assets to its counterparties when the value of a trade swings against it, to mitigate the risk the debt office might default. It also means confronting a series of thorny problems that few of its peers have tackled – most notably

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