Sovereign bond IM increases at LCH Ltd
Margin held in own sovereign debt up 50% year-on-year
UK-based LCH Ltd disclosed the share of initial margin (IM) it held in sovereign bonds increased over the second quarter, after seeing its cash pile grow in the early part of this year.
Total IM held by the central counterparty amounted to €231.3 billion ($270.9 billion) as of end-June, down almost 5% on three months prior but still elevated versus the level disclosed at end-2019.
Of the Q2 amount, 22% was held in cash at central banks or commercial lenders and 75% in sovereign bonds. At end
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