FT Alphaville » initial margins http://ftalphaville.ft.com FT Alphaville - Market Commentary - FT.com Wed, 19 Jun 2013 04:28:11 +0000 en hourly 1 http://wordpress.org/?v=3.3.2 Overplaying the role of haircuts in the crisis http://ftalphaville.ft.com/2012/02/08/873451/overplaying-the-role-of-haircuts-in-the-crisis/ http://ftalphaville.ft.com/2012/02/08/873451/overplaying-the-role-of-haircuts-in-the-crisis/#comments Wed, 08 Feb 2012 09:26:14 +0000 Izabella Kaminska http://ftalphaville.ft.com/blog/?p=873451 ICMA’s European Repo Council has taken a look at the role of haircutting repo collateral in the current crisis on Wednesday. It’s decided that, overall, (and especially in Europe) there is little reason to believe the practice of discounting repo assets’ market value has had much of an impact.

This is mainly for two reasons, writes the reports author Richard Comotto. First, there is a lot of misunderstanding in the market as to how haircuts and margins actually work. Second, the practice in Europe is very different to that in the United States.

Continue reading: Overplaying the role of haircuts in the crisis]]> http://ftalphaville.ft.com/2012/02/08/873451/overplaying-the-role-of-haircuts-in-the-crisis/feed/ 0 Will a Basel risk-free ‘about turn’ be enough? http://ftalphaville.ft.com/2011/12/06/782261/will-a-basel-risk-free-about-turn-be-enough/ http://ftalphaville.ft.com/2011/12/06/782261/will-a-basel-risk-free-about-turn-be-enough/#comments Tue, 06 Dec 2011 09:55:18 +0000 Izabella Kaminska http://ftalphaville.ft.com/blog/?p=782261 News that Basel III is reconsidering the use of government bonds as eligible capital to be held in banks’ so-called liquidity buffers, couldn’t have come quicker.

The world, for want of another phrase, is running out of collateral. Especially in Europe.

Continue reading: Will a Basel risk-free ‘about turn’ be enough?]]> http://ftalphaville.ft.com/2011/12/06/782261/will-a-basel-risk-free-about-turn-be-enough/feed/ 0