BANGING THE CLOSE "Companies, pension funds and investment firms from Calpers, the largest U.S. pension, to Newport Beach, California-based Pimco, manager of the world’s biggest mutual fund, use the kind of derivatives at the heart of the ISDAfix probe to hedge against losses or to speculate on interest-rate fluctuations. “ISDAfix, more obscure than Libor, has the potential to affect more people’s lives” because it’s used by pension funds to hedge portfolio risks and by most companies or users of fixed-income derivatives, said Jack Chen, a financial consultant in New York who has written about the swaps benchmark and Libor for SFC Associates, a financial consulting firm specializing in litigation matters. “In three years, ISDAfix will be the bigger story and could be potentially bigger than Libor in terms of damages,” he said. Representatives from Calpers and Pimco didn’t immediately respond to requests for comment. "
Posted on: Fri, 02 Aug 2013 14:11:48 +0000
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