Global custodian Northern Trust Corp. in March said that a $13.5 billion collective short-term extendable portfolio, or Step, cash collateral pool was hit with an unrealized loss of 1.35 percent for the month. Northern Trust is far from the only institution experiencing such losses.
In a report issued last month, Boston-based research firm Vodia Group says that 38 percent of the 32 executives it surveyed at leading global asset management firms lost money in their cash collateral pools over the past year.
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