Collateral Management: Are you really well equipped?
Regulations have increased the need for transactions in demand for higher quality collateral.
As a consequence, collateral management positioned itself as a business-critical function for a wider range of institutions active in the global securities and derivatives markets, encompassing banks, brokers, investment managers, hedge funds, pension funds, insurance firms and other asset owners.
Collateral is the ultimate tool to reduce counterpart risk and optimize funding.
Firms who fail to implement a sound collateral solution will find themselves at a considerable disadvantage. Banks may find themselves unable to fund core business lines, incapable to meet the needs of clients cost effectively and increase their credit risk exposure considerably; Buy-Side firms and portfolio managers may find themselves unable to pursue preferred investment strategies.
This is part of a series of papers to bring transparency in what should be delivered in Capital Market Solutions.
This publication details what functions/features to expect in a typical Modern Collateral solution for financial institutions.
It brings clarity to an institution selecting a collateral solution in what to have as a minimum. It also acts as a high-level roadmap check-list for software companies developing collateral solutions.
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