What’s the right counterparty exposure limit to CCPs? (Finadium subscribers only)

A recent Basel Committee document revisited a big unanswered question in counterparty credit limit exposures: what should the limit be to CCPs? We evaluate the recent Basel position, provide some historical context and offer our recommendations for best practices.

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Hedge funds not getting much love from LCR or NSFR

Can hedge funds get a break? It looks like they are not getting much love from LCR or NSFR.

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IOSCO report: preparing the corporate bond market for lower liquidity

A new research report from IOSCO looks at major trends in the corporate bond market over the last 13 years and going forward. While the study overall has some solid details on corporate bond issuance and secondary trading, the most interesting parts to us were towards the end. These focused on how the corporate bond […]

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Segregation of initial margin: buy side elections are coming soon. Will it impact swaps pricing?

Last week we wrote about the recent ISDA margin survey and the rehypothecation of collateral. We noted that 99% of the cash & 85% of government securities received as margin on non-cleared swaps was eligible for rehypothecation and that 87% and 45%, respectively, was actually used. There is more to the story, as explained in […]

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The solution to the fire-sale problem is buy and hold, but who will put up the cash?

The Fed posted an interesting article on their blog Tuesday that solidified some of our thinking about how to resolve the fire-sale problem. There is an opportunity for fire-sale risk mitigation here but it comes at a high price.

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Finadium: Rebuilding the Secured Funding Desk for Capacity and Growth

Finadium has released a new discussion report to focus on solutions to current challenges in the repo and securities lending markets.

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Finadium announces New York repo/secured funding event June 4

This event is free for clients. Please visit the Finadium.com for more details.

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The ISDA Margin Survey: rehypothecation of collateral and the BIS “one and done” proposal

This is our second post on the recently published ISDA 2014 Margin Survey. The part of the ISDA survey on collateral rehypothecation was really interesting. It all comes down to a footnote.

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The next proposed US rules: adjusting the denominator of the Leverage Ratio (Finadium subscribers only)

The battle over the US Supplementary Leverage Ratio is over; the final rule has passed. The next Notice of Proposed Rulemaking (NPR) from US regulators focuses on the total leverage exposure, which is the denominator of the Leverage Ratio. Here’s a quick review for securities finance professionals.

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A look at the new ISDA Margin Survey: cash vs. securities and who is doing the collateral optimization

ISDA has just published their 2014 Margin Survey. There is plenty to look at and discuss. In this post, we focus on the use of cash as collateral and who is doing collateral optimization.

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