Before US Rate Bets Wiped Out Billions, Warnings Were Ignored in Chile

It was a desperate appeal to regulators: Step in, they were urged, and put a stop to this reckless behavior. It came as Chilean pension funds were making outsized bets...

By Carolina Gonzalez and Valentina Fuentes · Bloomberg Markets

It was a desperate appeal to regulators: Step in, they were urged, and put a stop to this reckless behavior. It came as Chilean pension funds were making outsized bets on US interest rates, more than a year before a painful blowup left them billions of dollars in the red.