Collateral in 2021
22nd January, 2021
It’s hard to overstate how much collateral management has changed over the past several years, not least in 2020, something this special edition of Global Investor will explore.
Collateral in 2021
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Abstract:
It’s hard to overstate how much collateral management has changed over the past several years, not least in 2020, something this special edition of Global Investor will explore.
From primarily a back-office, operational function, collateral management is increasingly a critical front-office role, playing an important part in investment decisions. Managing the sources and uses of inventory efficiently contributes directly to the bottom line. Additionally, the interplay between collateral management and securities lending is driving a trend to a holistic view of financing for buy-side firms, helping institutions effectively manage their financial resources and contribute to investment returns.
Innovation has continued through technology and automation, creating new efficiencies, and ongoing regulatory change means that time-tested structures, such as triparty, are being used in new and innovative ways. Whilst we are certainly proud to be at the forefront of that innovation, we are not acting alone. The industry, buy- and sell-side institutions, clearinghouses, utilities, vendors and collateral agents have to increasingly work together to create solutions that are indeed larger than the sum of their parts. |
Download the whitepaper to learn more about:
Analytics
Data analytics and digitisation, the business case: Continuing focus on cost and the speed of adoption in 2020 are placing data and digitisation at the core of progress in collateral management.
Enabling capital and collateral savings: Matthew Wolfe, executive director for securities finance at OCC, explains how current analytics help provide members with unique risk modelling that translates into collateral and capital savings.
Convergence
Collateral convergence: As the events of 2020 underline their benefits, firm-wide convergence initiatives, supported by a clear management message, are growing in appeal.
Margin requirements: Addressing the growing collateral management needs at CCPs.
Mobilisation
Collateral mobilisation: An effective collateral transport solution means navigating multiple regulatory regimes and charting a path around – or through – a firm’s historical architecture.
Optimisation
Optimisation in theory and practice: As Covid compounds pressure from regulatory reform to accelerate collateral optimisation, measuring the benefit of different approaches remains a key challenge.
Enterprise wide collateral management and optimisation: the holy grail of securities finance: Phil Morgan, CEO of Pirum explains the three challenges that technology must solve to deliver progress towards these two long standing targets.
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