LCH Hikes Irish Bond Margins From 55% To 65%

Tyler Durden's picture

Yesterday 55%, today 65%, tomorrow: all cash, next week: Greek gold only (and evil silver speculators think they had a rough day).

From LCH:

Dear RepoClear Member,

In accordance with the Sovereign Credit Risk Framework and in response to the yield differential of 10 year Irish government debt against a AAA benchmark, LCH.Clearnet Ltd has revised the risk parameters for Irish government bonds cleared through the RepoClear service.  The additional margin required for positions of Irish government bonds will consequently be increased from 55% to 65% for long positions; this amount will be adjusted for the current bond price*.  Short positions will pay a proportionately lower margin.

1. This decision is based solely on publicly available yield spread data and in no way represents a forward looking market view. LCH.Clearnet will continue to monitor yield spreads closely and keep the parameters under close review in accordance with the Sovereign Credit Risk Framework.
2. The additional margin will be reflected in a margin call on Thursday 26 May 2011.
3. For further information please contact either Tom Chapman ( +44 (0)20 7426 6338 or Lianne Arnold ( +44 (0)20 7426 7376

Chris Jones
Executive Director and Head of Risk Management

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hugovanderbubble's picture

Lloyds and RBS = Default



Long-John-Silver's picture

Guillotine head-cuts are likely outcomes.

silberblick's picture

More hilarity below. Click on the link to see a graphic illustration of bankster's dirty hierarchy of needs:

Cassandra Syndrome's picture

Leprechaun Contagion Bitchez

Long-John-Silver's picture

The Devils Metal is up $1.20 today @ $37.83 and rising nicely.

oogs66's picture

The prices of Irish bonds have declined so much that 65% margin is less than you had to post a few weeks ago when the bonds were 10 points higher :)  At some point, particularly on the longer dated bonds, they should be more worried about the shorts losing money than the longs.  The 10 year is trading at 66.

THE DORK OF CORK's picture

This is a really bad production - it needs some work......


Franken_Stein's picture


The new world reserve currency will be a 500g pack of noodles.

It's concentrated hydrocarbon.


It can both be burnt and eaten.

It's durable up to 5 years without rot when stored dryly and in the dark and away from voracious bugs or rats.


Long noodles, bitches.


slewie the pi-rat's picture

franken-prepper:  long on noodles it is!

glad to see you're feeling a bit better; yer anti-american rants have been a bit hard to take;  especially since they are valid! 

Dolemite's picture

Weak holders getting out before next leg down

Silverstar's picture



anyone interested in the spreading of the #spanishrevolution to greece ??

Here comes the #greecerevolution

just watch live what happens on the Syntagmasquare....

THE DORK OF CORK's picture

Wow  - its all Greek to me  , is that the Greek Parliamentary building ?

Silverstar's picture

Yes it is their Parliament...


want to buy ?? Get it cheap *listen the ironic*

THE DORK OF CORK's picture

Its a portal to the future, right ?

When does this shit get real as I have my facial appointment tomorrow


mt paul's picture

baklava puts...


slewie the pi-rat's picture

if you're buying/selling irish bonds/(derivatives?) on margin, we'll need extra green stamps in the account, mark-to-market, as usual, of course.  18.1818&tc % momoney. tomorrow. 

@silverstar: anyone interested in the spreading of the #spanishrevolution to greece ??

each nation has its own way of saying:  huh? 

irishlink's picture

between the lovely visit of Her Royal Highness , Queen Elizabeth and President Barac Oama, I thought we had now shown the IMF,ECB,EU,and EMSF that we had friends in high places! Who can we play host to next? that worked a treat.

THE DORK OF CORK's picture

Oh I love surprises Irishlink.

We are such a special people, don't you think ?


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