Bank's 44% capital margin shocks FCMs

11/11/2013 | (subscription required)

Market participants are said to be awestruck by how much Credit Suisse has sidelined -- $1.75 billion -- to cover $3.94 billion in client swaps collateral, a ratio of 44%. The amount makes the lender easily one of the most conservative of futures commission merchants. The consensus among FCMs is that a collateral buffer of 10% should be adequate.

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