Collateral management: Firms face up to regulatory challenge

Collateral management has become an increasingly complex and vital component of credit risk management for the energy sector. With the EU considering reforming commodity derivative regulation, Alex Davis looks at the latest developments and examines whether they can speed up the reconciliation process and quell EU worries over OTC commodity markets

Balancing the books - collateral management

Although it is only one facet of credit risk management, collateral management has grown in importance for Europe's energy sector even before taking into account the market caution that became prevalent three years ago after the collapse of Wall Street banks Bear Stearns and Lehman Brothers.

For each market participant, keeping track of the liquidity levels across the whole trading portfolio continues to increase in complexity as growing market liberalisation combines with growing confidence

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 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…

You need to sign in to use this feature. If you don’t have a 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