Finadium has conducted an industry-wide survey of firms offering services in collateral management for securities and investments. This survey provides readers with a service summary, target clients and level of client interaction, product coverage, market differentiators, new functionalities added in the last year and additional service considerations. On an industry-wide basis, we analyze the important new features that firms are adding, their build vs. buy strategies in technology, product differentiation and what problems their clients are trying to solve.
The value of the Leverage Ratio has been proclaimed as a non-risk based measure that is supposed to capture all on and off-balance sheet liabilities of a bank. Together with risk-based measurements, the Leverage Ratio is supposed to ensure that bank risk does not get out of hand. Most regulators seem pretty happy with this idea. However, we are finding more and more evidence that the Leverage Ratio, as the recognized gating factor in Securities Finance Transactions and other kinds of trades, is really not good for banks, or the markets, at all.
There has been a lot of press about negative swap rates — where the fixed side of an interest rate swap (IRS) is lower than the equivalent maturity US Treasury. Lower rates imply a better credit counterparty, and in this case better than the US government. But this aberration actually has a repo component that is ignored at one’s peril.
An interesting twist in returns from cash and non-cash collateral in securities lending (Premium Content)Read More
Regulators, please note: the focus on Shadow Banking regulation must be on the smart allowance of risk (Premium Content)Read More
Finadium client webinar on blockchain and collateral management technology
December 8, 2015
IMN Beneficial Owners' International Securities Lending and Collateral Management Conference
February 3-5, 2015