Maximising Collateral Management

Description

Introduction

The application and use of “collateralising” operations, has evolved in recent years and the financial crisis of 2007- 2008 resulted in even more regulations and more significant development.

Delegates will gain a clear understanding of the risks involved, especially with moveable assets, the economics of financing transactions, the administration and IT infrastructures required to maximise support and control collateral activities. The impact of these activities will be examined to improve market liquidity and benefit all parties involved.

Course Content

• Evolving collateral management landscape
• Collateral management and documentation process
• Transaction types necessitating collateral #1 and #2
• The collateral lifecycle & collateral workflow
• Rules of movable assets and valuation and Valuation process
• Depreciation and componentisation
• Application of technology in collateral activities, Risk, issues and pitfall of collateral
• Legal protection, agreements and dispute resolution

Learning Outcomes

• Understand the collateral lifecycle (including valuation, margin calls, substitution, etc.), Understand depreciation and componentisation.
• Identify the primary risks and mitigating measures that are highlighted
• Understand drivers and mechanisms of the securities lending and understand the role of the collateral manager and Identify technology that will help to support collateral activities and set up collateral agreements for counterparties and clients
• Compare economics and benefits of lending using movable assetsIdentify the classes and type of assets that can be used as collateral