(Reuters) The Bank of England is studying how funds and insurers could cope with sudden demands for cash to back trades without resorting to a destabilizing fire sale of assets, a senior BoE official said on Thursday. Alex Brazier, the Bank’s executive director for financial stability strategy, said the simulation exercises will check how the investment sector could deal with a big increase in margin or collateral, and whether they hold enough “liquid” assets to meet it.
BoE simulates how funds, insurers cope with big margin calls
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