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AMS plans to transfer money to increase the amount of collateral, but that will not resolve the shortfall, UICI said.
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In addition, regulatory changes have increased the amount of collateral required for these trades, further constraining the number of option sellers.
Credit downgrades could hamper Wall Street firms by making it more expensive for them to borrow money, as well as increasing the amount of collateral they are required to post for certain trades.
Many lenders have been reluctant to provide credit to counterparties, especially leveraged investors, and have increased the amount of collateral they require to back short-term security financing agreements.
At the least, he said, borrowers would have to increase the amount of Treasury securities they offered as margin, or collateral for loans.
Increase the amount of wind-breaks.
Increase the amount of water you drink.
Gradually increase the amount of trotting.
Increase the amount of soy you eat.
Increase the amount of exercise done.
Increase the amount of walking you do.
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