A new research report from Finadium looks at scenarios for a full-blown collateral crisis that could arise over the next two years. These scenarios are all based on real-world situations occurring now; our projections are predicated on one or more levers being pushed in the wrong direction just enough to make the situation acute.
This report does not say that a crisis is imminent or that the sky is falling. Rather, scenario planning is an important exercise for considering the unknown. By exploring multiple scenarios and how they could play out, financial services firms and regulators can be better prepared to act when an actual crisis occurs. A true crisis may have some elements of our proposed scenarios, and some outside protagonists and impending forces. Thinking through one set of possibilities means that practitioners can be better prepared when variations occur.
This report has been written for a wide range of financial market professionals, from collateral managers looking to ensure that their own business activities are secure to Chief Investment Officers looking to safeguard their investments. Treasury and trading managers should take note in order to spot the signs of an impending crisis. Lastly, regulators, especially Central Banks, should be aware of not only when a crisis may be developing but also their role in creating the conditions for a crisis.
Download a free excerpt of the report here:
Finadium Collateral Crisis Scenarios Excerpt
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