Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Pension companies will have large liquidity needs if interest rates rise
Pension companies' need for liquidity will increase when the sector has to meet the requirement for central clearing of interest rate swaps and other derivatives by 2023. Pension companies should prepare so as to be able to manage cash variation margin requirements at all times. In the event of substantial interest rate increases, the companies will need large amounts of cash to be posted as variation margin the following day.