Clearing swaps costs to hit SSAs?

If and when US and European Union reforms force swaps through central clearing houses, sovereign, supranational or agency borrowers executing a new issue swap will have to follow Portugal’s recent lead and post collateral — a huge break with convention. Some banks claim this will cheapen up borrowing costs for SSAs. Is this true or will it push costs higher with banks the real winners? Will this powerful group of some of the highest quality credits — for whom dealers will move mountains to win business from — really have to pay, and if so, what will they pay with? EuroWeek on Friday investigates how tearing up the swap rule book will affect the SSA market.