collateral transformation

Collateral optimisation strategies can range from simply identifying the cheapest-to-deliver assets to much more sophisticated strategies, which include optimisation algorithms. In a Q&A SunGard’s Ted Allen explains the drivers and challenges firm face when implementing collateral optimisation strategies used by to support central clearing of cleared swaps and increased demands for capitalisation.

Q. What is collateral optimisation exactly? What are the drivers influencing plans for most firms you work with?

SunGard has added a cross-enterprise collateral management and optimization solution to its collateral management suite. Apex Collateral helps banks, broker dealers and asset managers improve risk management, make the best use of their collateral assets, and support the shift towards central clearing of over-the-counter (OTC) derivatives. 

Collateral management information is becoming increasingly part of the investment decision process as traders and risk managers demand more collateral information for determining the cost efficiency of a trade. Investit’s Sarah-Jane Dennis explains how the demand for collateral management information is impacting operational teams at buy-side institutions and she offers a check list for how these teams can become operationally ready for this new information demand.