Chile AFPs face losses after rate-swap bets; E Fund down 10.4% YTD

Chile's pension funds (AFPs) face mounting losses after increasing exposure to foreign interest-rate swaps, with the conservative E Fund down 10.4% YTD and 4.92% in September. Bloomberg reported the exposure on October 13, and regulators now signal potential legal action. The losses mark a reversal from 2025's 8% real gain, raising systemic concerns for Chile's pension system.