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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mrktwtch2's picture

once the euro takes out 120..all bets are off..

agent default's picture

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

slaughterer's picture

1.20 EUR/USD will be taken out by EOW once we get past AAPL earnings.

gatorengineer's picture

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?

ACP's picture

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

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.

Meremortal's picture

Reality intrudes again in Europe, even if temporarily.

Meanwhile, Obama has all of America shovel-ready!

For burial, that is...


buzzsaw99's picture

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

HedgeOn's picture

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


Another Texan's picture

This is called the "snowball" effect.

Meesohaawnee's picture

this is bullish right?

DeadFred's picture

What took them so long? Really

Catullus's picture

Never meet a margin call. Just sell.

PontifexMaximus's picture

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

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.

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?