Research & Thoughts

Collateral Management

Coming out of the back office and into the spotlight

It’s not “if” and it’s not “when”: it’s here and now. Change has come to Collateral Management — CM — and forward-thinking institutions have already recognized it. They are getting in shape to deal with a future which is still far from clear-cut, yet which also presents real commercial opportunities.

There will be more to success than implementing the best systems. Getting CM right is increasingly seen as a cultural issue. It is part of a broader shift towards making financial instrument transactions, no matter how “exotic,” reflect tangible underlying value. The inability of many financial institutions to fully understand exposure, and to identify the relative value of collateral, became a critical issue in 2008. Achieving sustainable best practice CM means having the right scalability and flexibility of processes, people and data supporting the CM function.

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