bills no longer considered risk free by chicago mercantile exchange c.m.e. group announced monday that as part of a normal review of market volatility they claim it is determined that t. bills should no longer be treated as a risk free when used as collateral haircuts time t. bills will rise from zero point zero percent to point five percent and. let's talk about this for a moment treasury bills you say when you have them in your portfolio and you use them as collateral you can borrow against them one hundred cents on the dollar and this is interesting because if you remember going back to the construction of collateralized mortgage obligations what they did was they created collateralized mortgage obligations as a way to skirt the margin requirements set up by valuable and switzerland that's the genesis of collateralized mortgage obligation because it's all about the margin requirements and margin requirements are different for different classes of assets so it junk bond you have to put up more of the junk bond if you want to put it into an account of borrow agai