Chile pension regulator restricts pension funds' use of interest rate swaps

3 articles · Updated · Bloomberg · Apr 28

The regulator notified AFPs on Friday that they may only use swaps to reduce existing risk, not to increase exposure, ahead of a new risk-based rules deadline later this year.
This move limits pension funds' ability to take on new derivative positions, requiring them to adjust their strategies within the next six months.
The restrictions are part of broader efforts to strengthen oversight of pension fund risk management as Chile transitions to a stricter regulatory framework.

How will Chile's pension funds hedge new investments without using more swaps?

How will President Kast’s tax cuts align with stricter pension fund regulations?

How will derivative limits impact Chilean AFPs' $123 billion foreign investment strategy?

Chile’s pension model failed elsewhere. Are these new rules enough to secure its future?

Is developing Chile's REPO market the real key to long-term financial stability?