Dutch pension fund manager, PGGM, has completed a €2.3bn trade to insure loans of Santander, in a deal that highlights the growing appeal of exotic financial instruments in a world of ultra-low interest rates. He said, however, that several prior transactions had been extended. The deal, which is expected to be finalised by Monday, will see Santander pay up to €2.5bn, or about £1.7bn,on behalf of its clients who bought bonds from the fund.
Dutch pension fund manager, PGGM, has completed a €2.3bn trade to insure loans of Santander, in a deal that highlights the growing appeal of exotic financial instruments in a world of ultra-low interest rates. The deal, which is expected to be finalised by Monday, will see Santander pay up to €2.5bn, or about £1.7bn,on behalf of its clients who bought bonds from the fund.