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Fig 21 - European SL Collateral Held in European Tri-party

Equities 43%
Corporate Bonds 10%

ISLA
Government Bonds 46%
Other 1%
Afternoon
Source: Clearstream, Euroclear, JP Morgan, BNY Mellon

European issuers once again dominate the collateral apparent gap was filled with either US government bonds
pool, representing 49% of all government bonds held as or issues from Asian governments, typically Japan. Here,
collateral. This is however six percentage points lower cross-currency basis trading which allows investors to Briefing
than the reported number as at the end of December 2018. capture the premium demanded by the holders of US
Again, the sudden fall in the use of European government Dollars in the term FX market, is clearly still a factor that
bonds as collateral may be a reflection of the contraction is leading to higher than expected levels of Asian bonds
of that market during the past six months. Most of the in these collateral pools. MUNICH 2019

Fig 22 - Government Bond Collateral Held in Tri-party by Domicile of Issuers

UniCredit AG, Munich

4 October 2019

For more information visit:
Europe 49%
www.isla.co.uk
Asia 37%
#ISLAMunich2019
North America 13%
Source: Clearsteam, Euroclear, JP Morgan, BNY Mellon

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