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 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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The Net Stable Funding Ratio (NSFR) and repo market liquidity: A Basel accident or an effort at extreme risk mitigation?

On the 7th of April, Risk Magazine published a piece by Lukas Becker entitled “Repo Desks Up In Arms About NSFR.” The article explains that Basel Committee on Banking Supervision’s (BCBS) Consultative Document on Basel III Net Stable Funding Ratio contains a little noticed requirement that could potentially have a dramatic impact on repo trading. […]

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Fed Q1 SCOOS report: synthetic prime brokerage in the spotlight

The Q1 Fed’s Senior Credit Officer Opinion Survey (SCOOS) just came out. We take a look.

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Promontory paper on CCPs and indemnification puts one question to bed while raising many tougher ones

In a follow on report from Promontory Financial Group sponsored by SL-x, the firm clarifies a position first stated in their earlier report on capital benefits and securities lending CCPs. The new report definitively answers a question about capital savings when agent lenders are providing counterparty default indemnification. But that’s just the opener for the […]

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Trends from emerging vendors in securities finance and collateral management (Finadium subscribers only)

Finadium recently completed an analysis of emerging technologies and services in securities finance and collateral management. The results will be published in an upcoming research report (note: this is a separate report from our recently released analysis of large collateral management technology vendors). In the meanwhile, below are some common themes we see in the […]

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