Corporate treasuries are starting to feel capital cost pain

After years of stable IRD usage, corporate hedging is getting more expensive and even clearing may not help

Going up: Greenwich Associates finds higher capital costs are starting to filter through to end-clients

Higher capital costs associated with the derivatives products used by corporate treasuries for hedging are starting to filter through to end-clients, according to research from Greenwich Associates, which found that despite years of stable usage of interest rate derivatives (IRD), capital rules are finally having an impact.

"The higher cost of capital for banks might finally be making its way into corporate treasury departments. Whereas most financial end-users post collateral to offset these

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: