Two weeks ago on Sunday, September 7th, at about the same time that many of us were tuning in for the first professional football games of the season, planet Earth had a near miss. An asteroid 60 feet in diameter buzzed past New Zealand at a frighteningly close distance from of just 25,000 miles. In terms of astrophysics, that’s a hair’s breadth! Astronomers breathed a huge sigh of relief, fearful that a direct hit on Sunday could have had the same affect as an asteroid impact in Russia last year. On February 15, 2013 an asteroid roughly identical in size to last week’s asteroid collided with Earth in the Russian town of Chelyabinsk. When the space rock weighing more than the Eiffel Tower and hurtling at 40,000 mile per hour slammed into the atmosphere, it exploded into a fire ball…

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The clearinghouse CME has announced that it is now accepting corporate bonds as initial margin for cleared trades, which would benefit asset managers and insurance companies with bond portfolios. Whether the Fed and other prudential regulators will do the same with respect to margin for uncleared trades is not certain. If not, the discrepancy could provide an incentive for certain end user to do a cleared trade over a uncleared trade.

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