Dutch Pension Overhaul Risks Creating ‘Basis Trap’ for Banks

Dutch pension funds are expected to unwind interest-rate swap trades as they move to a new investing model, leaving banks exposed to a “basis trap,” according to Societe Generale SA.

By Greg Ritchie · Bloomberg Markets

Dutch pension funds are expected to unwind interest-rate swap trades as they move to a new investing model, leaving banks exposed to a “basis trap,” according to Societe Generale SA.