Tariff-driven volatility triggers surge in derivatives margin calls

KKR sees opportunities amid tariff-driven market volatility

KKR is aiming to capitalise on volatility stemming from renewed trade tensions tied to former President Donald Trump’s tariff policies, using current market dislocations to identify compelling investment opportunities across asset classes, according to a report by Bloomberg. The report quotes Co-CEO Scott Nuttall as saying on the firm’s Q1 earnings call that: “Periods like this can present highly attractive entry points. With $116bn in dry powde…

Tariff-driven volatility triggers surge in derivatives margin calls

Heightened market volatility following the Trump administration’s tariff escalation earlier this month triggered a sharp rise in derivatives margin calls, placing acute liquidity strain on hedge funds and other leveraged investors, according to a report by Reuters. The report cites new data from post-trade services provider OSTTRA as revealing that from 2 April to 10 April, the total value of margin calls linked to derivatives nearly tripled, su…

Navigating Rising Margin Requirements amid Tariff Pressures

By David White, Chief Commercial Officer, CloudMargin The current escalation of tariffs under the Trump administration is creating renewed volatility across global markets. This geopolitical shift is having a direct impact on financial institutions, most notably through increased margin requirements driven by heightened market volatility. As firms grapple with these mounting pressures, the operational and financial challenges are significant—and…