New capital rules set to impact pension fund swap deals

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New rules changing the amount of capital banks must hold to transact derivatives are likely to affect pension funds in Europe. The good news is the effect is likely to be limited if funds work with their bank counterparties to optimise their positions say Sinead Leahy and Sian Hurrell.

The UK market for long-dated interest rate and inflation swaps has grown significantly since 2005, to stand at around GBP200 billion, as they become popular with pension funds trying to manage the ...

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