Bank of America Corp. is keeping its European rates trading desks fully staffed over the end-of-year period to be ready for potential volatility linked to a regulatory shift in the €1.9 trillion ($2.2 trillion) Dutch pension system.
The pension change, which analysts say is already pushing up yields on longer-dated bonds, is entering a crucial phase with more than half of the funds set to switch around year-end, when markets will be more vulnerable to outsized swings due to lower-than-usual liquidity.