Collateral Management

The growth in collateralised transactions has for many years significantly outpaced the general rise in transaction volumes. Transactions between financial institutions that were previously undertaken on an uncollateralised basis are increasingly being collateralised to reduce credit exposure and capital. Recent events in the financial markets have served to significantly advance this trend across all market participants - banks, hedge funds and asset managers.

Financial institutions are responding to this growth in collateral management by enhancing their operational collateral management systems, streamlining collateral processes and rationalising the organisational structures of their collateral functions. Industrialised collateral processes are rapidly being developed to enable collateral functions to operate in an automated and controlled way, in order to ensure the effective and efficient mitigation of credit risk.

In response to the financial crisis and regulatory pressure an increasingly large proportion of OTC transactions will be transacted through central counterparties (CCPs). Many banks are in the process of establishing their operational and risk management approaches for collateralised dealing with CCPs. See our services page for CCPs for more details.

InteDelta works with banks, hedge funds and asset managers to enhance their collateral management functions in order to design and deliver industry best practice.  Our overall consulting offering to the collateral management industry forms the InteDelta Delivery Lifecycle for Collateral Management.

In addition to our services for financial institutions we have a range of services for system vendors and outsourced providers of collateral management services – see vendor services.