West Wheelock Capital: removing rollover risk

manish-kapoor-app — Manish Kapoor, West Wheelock Capital

- Joe Rennison
- 15 Jan 2015

The concept of collateral transformation has been around since mandatory clearing and bilateral margining were first mooted. But while the idea is obvious and simple - give your illiquid collateral to a counterparty in exchange for assets that can be used as margin in over-the-counter derivatives trades – practical issues have stopped it taking off.

A key hurdle has been the duration lenders of

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