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ATP of Denmark Snubs French, Italian Bonds for Collateral

ATP, Denmark’s biggest pension fund, said it renegotiated contracts to avoid having to accept top-rated French sovereign bonds as collateral for funding.

The 711 billion-kroner ($122 billion) fund reworked swap agreements to exclude the use of bonds sold by France, Italy and other southern European governments as collateral against equity derivatives, interest-rate swaps and repurchase agreements, or repos, Chief Executive Officer Lars Rohde said. Hilleroed, Denmark-based ATP holds 173 billion kroner of collateral, according to its 2011 half-year report.