Dealers face funding time-bomb from one-way CSAs

bomb

Major dealers are each facing multiple billions of dollars in funding obligations as a result of derivatives trades with sovereign, supranational and agency (SSA) clients that refuse to post collateral to the banks. Those requirements could increase dramatically as interest rates rise, creating a funding time-bomb that regulators are doing nothing to defuse, dealers warn.

"There are large exposures associated with these trades and if there is a big market move, some less well-controlled banks

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@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com 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 Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking 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

.