Financial News
Michelle Price, Trading & Technology Editor at Financial News, looks at how look at how firms like Euroclear and Clearstream are increasingly targeting corporates and getting them into the funding markets, such as repos and beyond.
Jamie Lake, principal consultant at GreySpark, comments on this trend, maintaining that lending out cash assets looks like a good way for corporates to generate a return, particularly while interest rates are low.
He does point out, however, that this opens up their business to other risks, such as the corporate getting stuck with illiquid assets for up to a year. Corporates therefore need to be canny about how they manage the liquidity risk and, in particular, the quality of collateral they agree to take in.
