Nearwater sets up third US Treasury conduit with Barclays

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By Owen Sanderson
14 Oct 2020

Nearwater Liquid Markets has set up a third ABCP conduit which will buy only US Treasuries, repoing them with Barclays, in a move that would help the UK-based bank manage its access to high quality collateral. The new vehicle joins existing structures Nearwater has set up with BNP Paribas and with JP Morgan.

The three vehicles, Columbia Funding, with JP Morgan, Mackinac, with BNP Paribas, and now Britannia Funding, with Barclays, share a common structure and rationale.

All issue asset-backed commercial paper, and use the funds raised exclusively to purchase US Treasuries. The conduit can then repo the Treasuries at a ...

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