A Shortage of Bonds to Back Derivatives Bets

Starting next year, new rules will force banks, hedge funds, and other traders to back up more of their bets in the $648 trillion derivatives market by posting collateral. While the rules are designed to prevent another financial meltdown, a shortage of Treasury bonds and other top-rated debt to use as collateral may undermine the effort to make the system safer.

http://www.bloomberg.com/bw/articles/2012-09-20/a-shortage-of-bonds-to-back-derivatives-bets

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