Asset managers face challenges in complying with new regulations that require many over-the-counter derivatives to be centrally cleared, including requirements to post cash-based variation margin rather than bonds. This leaves asset managers needing to hold pools of cash in multiple currencies to meet daily margin calls, negatively impacting fund performance, or relying on asset transformation through repurchase markets to generate the necessary cash. However, there is a question around whether repurchase financing lines will remain available in stressed market conditions, and what funds can do if they cannot pay legally required variation margin calls due to lack of available cash or financing.