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.



Source: LCH


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Mon, 07/23/2012 - 13:21 | 2643137 mrktwtch2
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once the euro takes out 120..all bets are off..

Mon, 07/23/2012 - 13:23 | 2643141 agent default
agent default's picture

Will  take a while.  The Central banks will fight tooth and nail for 1.20-1.21. 

Mon, 07/23/2012 - 13:30 | 2643162 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 | 2643492 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 | 2643143 ACP
ACP's picture

Che la morte non sia crudele. Requiescat in pace, euro?

Mon, 07/23/2012 - 13:29 | 2643158 Duke of Con Dao
Duke of Con Dao's picture

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 | 2643160 Dr. Engali
Dr. Engali's picture

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 | 2643166 Meremortal
Meremortal's picture

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 | 2643167 buzzsaw99
buzzsaw99's picture

if you can't stand the counterparty heat get out of the kitchen.

Mon, 07/23/2012 - 13:32 | 2643168 HedgeOn
HedgeOn's picture

Dimon better hope that IG whatever position is fully closed.  Things are about to go batshit crazy.


Mon, 07/23/2012 - 13:40 | 2643191 Another Texan
Another Texan's picture

This is called the "snowball" effect.

Mon, 07/23/2012 - 13:44 | 2643202 Meesohaawnee
Meesohaawnee's picture

this is bullish right?

Mon, 07/23/2012 - 14:17 | 2643297 DeadFred
DeadFred's picture

What took them so long? Really

Mon, 07/23/2012 - 14:26 | 2643335 Catullus
Catullus's picture

Never meet a margin call. Just sell.

Mon, 07/23/2012 - 14:52 | 2643409 PontifexMaximus
PontifexMaximus's picture

Nothing will happen, BAC & JPM in + territory...

Mon, 07/23/2012 - 17:17 | 2643759 asteroids
asteroids's picture

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 | 2644272 Ted Baker
Ted Baker's picture

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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