collateral conversion

CCP, Collateral Management, OTC Derivatives Clearing, Regulatory, Repo, Securities Lending

Bloomberg, CCPs, CFTC, collateral conversion, collateral enhancement, collateral management, collateral transformation, Collateral upgrade, FSA, OTC derivatives

Bloomberg ran a long article on the collateral transformation trade written by Brad Keogh, a reporter who has contacted us in the past and who took the matter seriously. We…

Fitch: Collateral Transformation Drives Central Clearing Risks

June 14, 2012

CCP, Collateral Management, Repo

CCP, collateral conversion, collateral transformation, Collateral upgrade, Fitch, Repo

Fitch posted some commentary today on their view of risks coming from the collateral transformation trade: The shift away from over-the-counter (OTC) derivative contracts toward clearing via central counterparties (CCPs)…

More factors to consider on the direction of collateral transformation trades

May 24, 2012

collateral, collateral conversion, collateral enhancement, collateral management, collateral transformation, Collateral upgrade, Repo, Securities Lending

Collateral Management, Repo, Securities Lending

First it’s the next big thing, then its a red herring, then clearers say they don’t want to do it, and now securities lending agents and beneficial owners say they…

Collateral Transformation Trades for CCPs: Banks say "Sorry, we can't help you"

An article in Futures and Option World entitled “OTC Clearing IV: How to ease the collateral squeeze” (May 21, 2012) caught our eye. Most of it is the usual stuff on the…

Will CCPs force pension funds out of OTC derivatives?

February 20, 2012

CCP, Derivatives, Featured, Pension Management, Regulatory

Basel III, CCP, collateral conversion, collateral management, collateral transformation, Collateral upgrade, derivatives, Dodd-Frank, Europe, Finadium, OTC derivatives

A recent article from Towers Watson, the consulting firm, entitled “Is this the end of OTC derivatives for pension schemes” caught our eye. It is about the impact on financial regulation…

More on collateral upgrades and collateral mismatch

January 26, 2012

collateral conversion, collateral management, collateral transformation, Collateral upgrade, Liquidity Management, Repo

Collateral Management, Featured, Prime Brokerage, Repo, Securities Lending

On January 20th we posted “Is the collateral upgrade trade a red herring?“. This isn’t the first time we have written about the complexities of collateral swaps. Last October we…

Now everyone is a repo trader

As our first post of the year, it is appropriate to come back to one of our common threads: collateral. The WSJ article from Dec. 29, 2011 “Europe’s Banks Face…

Repo in 2012: high quality paper scarce, risker paper increasingly harder to fund

December 6, 2011

CCP, Collateral Management, Liquidity Management, Regulatory, Repo

CCP, collateral conversion, collateral management, collateral transformation, ECB, Europe, Repo

Three recent posts on FT Alphaville all point in a similar direction. If you connect the dots on these cautionary tales, 2012 is going to be a difficult year in securities…

Derivsource: Collateral Transformation, Silver Bullet or Smoke and Mirrors?

We think there are some great points brought up in this piece. The Custodians, through their FCMs or DCOs, are all interested in facilitating collateral conversion trades for their clients,…

UK regulators scrutinizing collateral upgrade trades

October 18, 2011

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…

CME's Donahoe: more collateral upgrades needed for OTC derivatives

October 11, 2011

collateral conversion, collateral enhancement, collateral management, collateral transformation, Collateral upgrade, OTC derivatives

CCP, Collateral Management, OTC Derivatives Clearing, Regulatory, Repo, Securities Lending

Speaking at the Futures Industry Association meeting in Chicago, Craig Donohoe, CEO of the CME, noted that more collateral upgrade trades would need to occur for central clearing of OTC…

IMN 16th Annual European Beneficial Owners Securities Lending Conference: some common themes

September 29, 2011

CCP, Regulatory, Securities Lending

Basel III, CCP, collateral conversion, collateral transformation, Custodians, derivatives, Europe, LCR, Liquidity Coverage Ratio, Securities Lending

The IMN 16th Annual European Beneficial Owners Securities Lending Conference was held earlier this week in London. The conference was well attended with numerous lenders, dealers, technology vendors, and consultants…

Collateral upgrade boom or bust?

August 30, 2011

collateral conversion, collateral enhancement, collateral transformation, Collateral upgrade, Finadium

Collateral Management