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I'm curious how the current negative Eonia (Euro OverNight Index Average) rates would impact derivatives pricing. Does it mean that if I post cash collateral to you, I also need to pay you interest?

More generally, does it mean that the classical interest-rate modelling assumption that interest rates can't go negative is now invalid?

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Eonia's negative implies parties posting collateral must also pay interest to their counterparties, which has led to calls for clarity from dealers.

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