Sovereign snub shrinks collateral pool

Eurex Repo, German exchange operator Deutsche Börse’s clearing house for secured lending agreements, has dropped Portuguese and Italian debt from its preferred collateral trading pool

Eurex Repo, German exchange operator Deutsche Börse’s marketplace for secured lending agreements, has dropped Portuguese and Italian debt from its preferred collateral trading pool.

The move will increase the risk that holders of sovereign bonds that were previously eligible as collateral may be pushed out of the clearing system.

WSJ Logo