Vote up! 0 Vote down! 3 What? Why, isn't this what caused the problem Vote up! 0 Vote down! 1 Because the 10 year gilt rate is up at 4.5%. If you buy your own bonds, it lowers the total coupon, and therefore is deemed lower risk Vote up! 0 Vote down! 4 It's not the absolute level of the gilt rate, it's the speed at which it moved https://bondvigilantes.com/blog/2022/09/collateral-calls/ Vote up! 0 Vote down! 1 FT have just done an article on this as well https://www.ft.com/content/038b30c3-f550-4cc0-93ed-9154021d6ee2 Vote up! 0 Vote down! 3 Thanks Vertigo, that's actually a very interesting and useful set of links. [Checks is actually on RoF] Vote up! 0 Vote down! 2 Nationalise the BoE and do it as soon as possible Vote up! 0 Vote down! 2 Same reason the mortgage market has seized up. Banks can't manage the admin of risk management while the swaps market is so volatile. Refresh Back to board Join the discussion Login Register
Vote up! 0 Vote down! 1 Because the 10 year gilt rate is up at 4.5%. If you buy your own bonds, it lowers the total coupon, and therefore is deemed lower risk
Vote up! 0 Vote down! 4 It's not the absolute level of the gilt rate, it's the speed at which it moved https://bondvigilantes.com/blog/2022/09/collateral-calls/
Vote up! 0 Vote down! 1 FT have just done an article on this as well https://www.ft.com/content/038b30c3-f550-4cc0-93ed-9154021d6ee2
Vote up! 0 Vote down! 3 Thanks Vertigo, that's actually a very interesting and useful set of links. [Checks is actually on RoF]
Vote up! 0 Vote down! 2 Same reason the mortgage market has seized up. Banks can't manage the admin of risk management while the swaps market is so volatile.
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Because the 10 year gilt rate is up at 4.5%. If you buy your own bonds, it lowers the total coupon, and therefore is deemed lower risk
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It's not the absolute level of the gilt rate, it's the speed at which it moved
https://bondvigilantes.com/blog/2022/09/collateral-calls/
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FT have just done an article on this as well
https://www.ft.com/content/038b30c3-f550-4cc0-93ed-9154021d6ee2
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Thanks Vertigo, that's actually a very interesting and useful set of links.
[Checks is actually on RoF]
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Nationalise the BoE and do it as soon as possible
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Same reason the mortgage market has seized up. Banks can't manage the admin of risk management while the swaps market is so volatile.
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