Liquidity Management

CCP, Collateral Management, Liquidity Management, OTC Derivatives Clearing, Regulatory

Basel III, CCP, collateral conversion, collateral enhancement, collateral management, collateral transformation, Collateral upgrade, LCR

There have been a handful of articles in recent days about UK regulators scrutinizing collateral upgrade trades. One issue the FSA seems to be concerned about is the ability of…

Institutional investors tapping repo for liquidity

October 17, 2011

Liquidity Management, Repo, Securities Lending

Finadium, Institutional Investors, Liquidity Management, Repo, Securities Lending

An article in P&I today falls into the “what we always knew but still nice to see in the mainstream press” department. Institutional investors are engaging in repo and securities…

Short-Term Debt, Rollover Risk, and Financial Crises

October 12, 2011

Liquidity Management, Repo

Bear Stearns, Credit Markets, Federal Reserve, Federal Reserve Bank of New York, Liquidity Freeze, Liquidity Management, Money Markets, Repo

Today on the the Federal Reserve Bank of New York’s Liberty Street Economics blog there is an interesting post about the theory behind short term debt markets freezing up in crises.…

Bond Traders Left Adrift as Dealers Reduce Risk: Credit Markets

October 6, 2011

Liquidity Management, Repo, Securities Lending, Tri-Party Repo

Basel III, Credit Markets, Leverage, Liquidity Coverage Ratio, Repo

Volatility in the markets certainly contributes to the pullback in trading of corporate bond and other “story paper”. We wonder if the changes in the tri-party market, preparation for the…

New York Fed May Seek Liquidity Details From European Banks

October 3, 2011

Liquidity Management, Regulatory, Repo, Tri-Party Repo

Credit Markets, Europe, Federal Reserve, Money Markets, Repo, Shadow Banking, tri-party repo, Wholesale Funding

Apropos our article earlier today on Fed research on foreign bank liquidity during the credit crisis, here is an interesting story from Bloomberg on the Fed seeking more liquidity details…

Fed research on bank liquidity during the recent credit crisis

October 3, 2011

Liquidity Management, Regulatory

Fed, Federal Reserve, Liquidity Management

The Fed has posted an interesting research note on how banks use internal liquidity from different jurisdictions to manage capital. While the original article posted in July 2011, there are…

Regulation-driven technology key theme at Sibos – AST

September 28, 2011

Liquidity Management, Regulatory

Regulations, SIBOS, Swift

From Asset Servicing Times: Technological innovations meeting demands of regulation-driven change, which is impacting business models across the financial industry’s supply chain, was the focus of delegates at this year’s…

New platform from Newedge and MTS to target corporates to lending cash, will collateralize using tri-party infrastructure

September 22, 2011

Liquidity Management, Regulatory, Tri-Party Repo

collateral management, Europe, Liquidity, Liquidity Coverage Ratio, tri-party repo, Wholesale Funding

This seems like potentially disruptive technology. By targeting term trades to corporates (who typically transact unsecured deposits) on a secured tri-party basis, the product could be very appealing to both…

Comments from SIBOS: DTCC's Bodson says CCPs not necessarily safer for OTC clearing

September 22, 2011

Collateral Management, Liquidity Management, OTC Derivatives Clearing, Regulatory

CCP, collateral management, Dodd-Frank, OTC derivatives

This sounds to us like a “The Emperor is wearing no clothes” moment….. Michael Bodson, chief operating officer of US post-trade utility Depository Trust and Clearing Corporation, insisted that central…

Finadium conference highlights

September 21, 2011

Collateral Management, Liquidity Management, Regulatory, Repo, Securities Lending

collateral management, ETFs, Finadium, Securities Lending

The Finadium 2011 Conference was held on September 20th in New York City and drew a large audience; seats were sold out by the prior week. The event was held…

A Europe Update from our friend Sam Kassahun

September 19, 2011

Liquidity Management, Regulatory

Europe, Liquidity

“Failure is not a single, cataclysmic event. You don’t fail overnight. Instead, failure is a few errors in judgment, repeated every day.” – Jim Rohn (1930-2009) Much attention is consumed…

Bad idea of the week – taxing seclending and repo

September 16, 2011

Liquidity Management, Repo, Securities Lending

derivatives, Europe, Repo, Securities Lending, Taxes

Do they still not get it? In a letter to the EU tax commissioner, France and Germany are pressing for a tax of 0.1% for shares and bonds and 0.01%…

If SocGen sells Securities Services, who benefits?

September 12, 2011

Collateral Management, Liquidity Management, Repo, Securities Lending

Asset Servicing, Securities Lending, Securities Services

Reuters reports that SocGen expects to sell assets in its asset management and specialized financial services divisions – ie, Securities Services – in order to raise 4 billion Euro to…

"Margin Call", the movie is coming in October! Popcorn anyone?

September 9, 2011

Collateral Management, Liquidity Management, Repo, Securities Lending

Leverage, Margin, Securities Lending, Short selling

Just when you thought it passe, another movie about Wall Street is coming your way in October — “Margin Call” staring Keven Stacey, Jeremy Irons, Stanley Tucci, Demi Moore and…

Basel Committee's Walter dismisses reports of Liquidity Coverage Ratio (LCR) overhaul – Risk Magazine

September 8, 2011

Liquidity Management

Basel III, LCR, Liquidity Coverage Ratio, Liquidity Management