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
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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