Chiles pension funds sought derivatives curbs before losses
Executives at Chiles pension funds requested regulatory limits on volatile interest rate derivatives before suffering billions in losses from US Treasuries. The downturn heavily impacted the systems most conservative fund, drawing criticism from lawmakers.
Executives managing pension funds in Chile sought regulatory limits on interest-rate derivatives prior to $7.7B in losses from United States Treasuries. The losses have impacted conservative retirement portfolios and sparked sharp criticism from lawmakers. The controversy highlights competitive pressures that prevented individual fund managers from scaling back risky trades independently.
