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LCH Cuts Portugal Bonds From Repo Basket

LCH.Clearnet has scaled back the use of Portugal’s bonds as collateral for loans.

LCH.Clearnet has scaled back the use of Portugal’s bonds as collateral for loans, Financial Times reports. The clearing house said that Portuguese bonds will no longer be eligible for trading in certain baskets.

Portuguese government bonds will not be eligible for delivery in any of LCH’s RepoClear baskets from March 28, adds Market Watch. The move comes after Standard & Poor’s decision to lower the country’s debt rating.

Click here for the story from Financial Times.

Click here for additional coverage from Market Watch.

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