TMPG, SIFMA Make Push for Margining MBS Trades to Lower Counterparty, Systemic Risks
November 21, 2012
Securitization market professionals are jointly promoting the practice of “margining” transactions involving Fannie Mae, Freddie Mac and Ginnie Mae MBS, despite the costs involved, to reduce counterparty and systemic risks. Last week, the Treasury Market Practices Group revised its existing “best practices” for Treasury, agency debt and agency MBS markets to include a recommendation that forward-settling agency MBS transactions be margined in order to prudently manage counterparty exposures. “In order to allow market participants to develop...
Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.
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