July 18, 2018 / 7:40 AM / in 2 months

LCH raises margin call on Italian bonds

MILAN, July 18 (Reuters) - The cost of using Italian bonds to raise funds rose on Wednesday after clearing house LCH increased the margin on debt from the euro zone’s third largest economy.

Banks use government bonds as collateral to access cash in the repurchase (repo) market, in which clearing houses assume lending risks to provide institutions with the cash.

Reporting by Elvira Pollina and Valentina Za; editing by Francesca Landini

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