Skip to main content

Firms scramble for collateral prize that glitters

By 28 Mar, 2012May 30th, 2017News

Financial News

Due to the upcoming market wide regulations requiring firms to put up more collateral in readiness for a potential default of a counterparty, Tom Osborn assesses the swaps market and various collateral optimisation services offered to plug the gap in the lending market.

Managing collateral distribution is clearly key; however with expertise in collateral management sparse, banks looked to build internal specialist optimisation units.

Firms are now experiencing an increased demand for high-grade collateral, and with all lending avenues exhausted, some are turning to the repo market. GreySpark sees parallels between the collateral and repo markets, pointing out that as market conditions get tougher, so does the lending criteria.

Read more