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Chilean pension funds warn of derivatives risk after US rate bet losses
PerfilSRC LO·CL · US·about 14 hours ago
Chile's seven AFPs accumulated $7.7 billion in valuation losses from derivatives betting on falling US interest rates, per Bloomberg and the pension regulator. The losses, spread over two years, underscore the funds' exposure to US rate expectations and raise questions about risk management in the $229 billion system. The development is significant for Chilean savers and highlights broader emerging-market pension fund vulnerability to US monetary policy shifts.
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