How to play the Collateral Crunch
Hi Everyone, The impending collateral crunch is looming as mandated central clearing And margins on non-cleared trade rules become effective (as early as late 2012 for some US market participants). There has also been a lot of talk about significantly increased aggregate demand for high quality collateral to meet this requirements (i.e. G8 treasuries). Moodys recently published an article stating that additional global demand for collateral assets will range between $700b and $1.2T in the first year of implementation.
So with that in mind, how would you, as a retail investor, trade on this? Is the trade even still there?