The sector's mark-to-market position remains under control

At the end of June, 40 providers held free-standing derivatives, with a mark-to-market position of £177million, up from £138million at the end of March.  During this period, the 15-year swap rate fell from 4.58% to 4.50%.  The latest quarterly survey shows that collateral of £2.3billion had been provided against this exposure.  This data now excludes loan-linked derivatives, which are not subject to margin calls.