According to Bloomberg, executives of Chile's pension funds asked regulators to curb volatile interest-rate derivatives before a downturn in US Treasuries left them with billions of dollars in losses. Fund managers had flagged the risks, and these positions have hit Fund E, the most conservative fund in the system, hard. Earlier, the funds were reported to have lost about $7.7 billion on interest-rate-related positions. Some lawmakers called the losses “very serious” and demanded action against those responsible, while another lawmaker said authorities must first determine whether the investments were within the permitted framework. The AFP Association stressed that fund performance should be judged over the long term rather than by short-term fluctuations.
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