Banks look for tech solution to collateral crunch

With the frequency and volume of collateral calls set to increase dramatically, banks and buy-side firms alike are investing in new systems to help them manage their stock of assets in an efficient way. By Clive Davidson

christophe-de-la-bastide
Christophe de la Bastide

Collateral management used to be an afterthought, but new regulations – and revamped swaps pricing practices – have sent it rocketing up the list of priorities for dealers and their clients. All standardised over-the-counter trades will soon be cleared by central counterparties (CCPs) – which require participants to post initial and variation margin – while uncleared transactions will also be subject to compulsory bilateral margining. The vast majority of collateral in both cleared and uncleared

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here