T-Bills No Longer Considered Risk Free By Chicago Mercantile Exchange

CME Haircuts

Photo: CME

CME Group announced Monday that as part of a “normal review of market volatility,” it has determined that T-Bills should no longer be treated as risk-free when used as collateral.Haircuts on T-Bills will rise from 0.0 per cent to 0.5 per cent on Thursday, according to the statement. T-Notes/T-Bond haircuts will not increase by 1 percentage point across the board.

View the full statement here:

[via Zach Goldfarb]



Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.