Trading Italy Comes With Financial Penalty as Bond Yields Surge
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Europe’s biggest clearinghouse said that customers must put down bigger deposits to trade Italian bonds as concern rises the government will struggle to reduce the world’s third-largest debt burden.
The margin needed for Italian bonds due in 7 to 10 years will be raised to 11.65 percent, LCH Clearnet said in a document on its website dated yesterday. That compares with a charge of 6.65 percent announced on Oct. 7. The added costs will be applied at the close of trading today for all bonds, with the amount based on maturity. The deposit for French bonds due in seven to 10 years is 4.60 percent, according to the document.