Banks look for tech solution to collateral crunch

Crunch solutions

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

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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.

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