Isda AGM: Euro crisis drives up collateral, finds survey
Trouble in the eurozone is increasing collateral in over-the-counter derivatives market, according to Isda
A marked rise in collateralisation came towards the end of last year, driven by downgrades of financial firms, the eurozone debt crisis and reductions in interest rates that caused shifts in yield curves, says the International Swaps and Derivatives Association.
The findings come in Isda's annual collateral survey, which estimates the amount of collateral circulating in the non-cleared over-the-counter derivatives market at approximately $3.6 trillion for the end of 2011 – a rise of 24% compared
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