Isda AGM: Industry to address negative interest rates under CSA

falling rates

An industry group will launch a best practice document within weeks that will confirm negative interest rates should - in most cases - be used when determining the rate paid on posted collateral. In other words, in a negative interest rate environment, the firm posting collateral will pay interest to its counterparty for holding its assets.

The situation has become increasingly problematic over the past year as the overnight indexed swap (OIS) rate - the benchmark rate used to determine the

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