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LCH Adds Margin Call To Injury, Hikes Spanish, Italian Bond Margins

Tyler Durden's picture





 

Hopefully nobody will be surprised to learn that after Spanish bonds closed at all time records earlier, just shy of 7.50%, that LCH has decided to hike margins on not only Spanish bonds, in the 7-30 year duration windows (from 11.80% to 12.20% for the benchmark 10 Year), but also on Italian bonds, at both the short and long-end, which are now also rapidly approaching the 7% threshold, pushing the 7-10 Year duration window from 9.50% to 11.65%, and which will approach it much faster now that there will be even more forced margin selling to cover collateral calls.

Spain:

Italy

Source: LCH

 

 


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Mon, 07/23/2012 - 13:21 | Link to Comment mrktwtch2
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once the euro takes out 120..all bets are off..

Mon, 07/23/2012 - 13:23 | Link to Comment agent default
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Will  take a while.  The Central banks will fight tooth and nail for 1.20-1.21. 

Mon, 07/23/2012 - 13:30 | Link to Comment slaughterer
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1.20 EUR/USD will be taken out by EOW once we get past AAPL earnings.

Mon, 07/23/2012 - 15:21 | Link to Comment gatorengineer
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How do you figure an appl whiff will be Euro Bullish..... An APPL beat might do it, but do you really think that will happen?

Mon, 07/23/2012 - 14:29 | Link to Comment ACP
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Che la morte non sia crudele. Requiescat in pace, euro?

Mon, 07/23/2012 - 13:29 | Link to Comment Duke of Con Dao
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the Parasite in Chief might have soemthing to say about it...

YouTube - "Howard Roark, You Didn't Build That!" says President Obama

Mon, 07/23/2012 - 13:29 | Link to Comment Dr. Engali
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It's probably about time to hike margin requirements for gold and silver too. We know how dangerous and volatile they can be.

Mon, 07/23/2012 - 13:32 | Link to Comment Meremortal
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Reality intrudes again in Europe, even if temporarily.

Meanwhile, Obama has all of America shovel-ready!

For burial, that is...

 

Mon, 07/23/2012 - 13:32 | Link to Comment buzzsaw99
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if you can't stand the counterparty heat get out of the kitchen.

Mon, 07/23/2012 - 13:32 | Link to Comment HedgeOn
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Dimon better hope that IG whatever position is fully closed.  Things are about to go batshit crazy.

 

Mon, 07/23/2012 - 13:40 | Link to Comment Another Texan
Another Texan's picture

This is called the "snowball" effect.

Mon, 07/23/2012 - 13:44 | Link to Comment Meesohaawnee
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this is bullish right?

Mon, 07/23/2012 - 14:17 | Link to Comment DeadFred
DeadFred's picture

What took them so long? Really

Mon, 07/23/2012 - 14:26 | Link to Comment Catullus
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Never meet a margin call. Just sell.

Mon, 07/23/2012 - 14:52 | Link to Comment PontifexMaximus
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Nothing will happen, BAC & JPM in + territory...

Mon, 07/23/2012 - 17:17 | Link to Comment asteroids
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I guess this only affects the evil pension and hedge funds that run on massive leverage. Get them offside and then change the rules on them and force them to ruin. Nice.

Mon, 07/23/2012 - 21:00 | Link to Comment Ted Baker
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Don't u love it when this ponzi clearing agencies are used by euro elite to stop speculators from buying skyrocketing securities?

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