The Asian Development Bank (ADB) has outsourced its derivatives collateral management activities to ABN Amro. In addition, ABN Amro Mellon Global Securities Services will act as global custodian for all ADB's collateral securities.The Dutch bank will act as collateral agent to ADB and take on responsibility for marking derivatives collateral to market while also handling margin calls and settlement. To maintain confidentiality with counterparties, ADB will continue to value its own derivatives transactions.
“Collateral management is important for managing the counterparty risk in the bank’s derivatives portfolio,” said Juan Limandibrata, assistant treasurer and head of funding at ADB. “The decision to outsource is based on an analysis of the incremental resources required internally versus the cost and flexibility of outsourcing," he added. "ABN Amro has enabled ADB to implement an effective collateral programme.”
More on Credit Risk
Fabio Mercurio and Minqiang Li investigate CVAs in the presence of wrong-way risk
Alexander Antonov, Bianchetti and Mihai develop a universal and efficient approach to numerical FVA calculation
Jacky Lee and Luca Capriotti present an arbitrage-free valuation method for counterparty exposure of credit derivates portfolios.
EU lenders say both EBA proposals would distort capital requirements
Sign up for Risk.net email alerts
Sanjay Sharma talks about risk transparency and how his book helps achieve it.
A five-minute formula from Alexander Denev that takes you through a simple probabilistic graphical model and explains how and why these are used. Find out more about the ground-breaking book, Probabilistic...
Industry leader Vincent Kaminski discusses the challenges faced by energy markets and his new book, Managing Energy Price Risk, 4th Edition.
Momtchil Pojarliev talks about his book, The Role of Currency in Institutional Portolios, currency investing and the potential role of currencies in institutional portfolios.
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.