Periodical
US Swaps Bets Backfire, Wiping Out Billions From Funds in Chile.
| Τίτλος: | US Swaps Bets Backfire, Wiping Out Billions From Funds in Chile. |
|---|---|
| Συγγραφείς: | Gonzalez, Carolina (AUTHOR), Sanders, Philip (AUTHOR) |
| Πηγή: | Bloomberg.com. 10/13/2026, pN.PAG-N.PAG. 1p. |
| Θεματικοί όροι: | *Interest rates, *Derivative securities, *Pension trusts, *Net losses, *Business losses, *Economic shock, *Bond prices |
| Γεωγραφικοί όροι: | United States, Chile |
| Περίληψη: | The article reports on the financial challenges facing Chile's private pension funds, known as AFPs, which are facing billions of dollars in losses due to bets on US interest rates that backfired after the Iran war triggered global inflation. The AFPs, which manage approximately $229 billion in assets and are the primary retirement savings source for most Chileans, had invested heavily in derivatives that would pay off if US rates continued to fall. However, a combination of new regulations forcing them to unwind these positions and a US bond selloff that pushed yields higher has resulted in significant mark-to-market losses, with the value of their foreign interest-rate derivative positions swinging from a $1.4 billion gain to a $7.7 billion loss in a year. The article notes that the funds are now paying Wall Street banks to break the contracts and that the losses have impacted the performance of the AFPs' E, C, and D funds, with the E funds losing an average of 10.4% this year. [Extracted from the article] |
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| Βάση Δεδομένων: | Business Source Index |
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