Teresa Rivas reflected on the Financial Times
story about remaining days before Dodd-Frank imposes derivative reforms for mutual funds and pension funds.
The Financial Times
story quotes James Wallin, a senior vice president on the fixed-income side of
] , who is quoted as saying, "In a way we're simply doing what we've been doing for listed futures for years. But it's difficult moving an asset class like over-the-counter derivatives into a new framework."
Rivas writes that what may be perceived whining may be a worthy complaint, now that managers have to put up more money on margin up front, which Rivas says could eat up liquid working capital. She reports that it may prove difficult to find a derivative product to "pair up" with more unusual risks, providing some headaches for fund firms.
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