Collateral Optimisation - Navigating Market Turbulence in 2023

DerivSource's Living The Trade Lifecycle

Collateral management remains in the spotlight this year and for good reason - market volatility, rising inflation and interest rates put greater pressure on collateral managers in the form of rising business costs, funding costs and an increase in the volume of margin calls. In this episode of the DerivSource podcast, Living the Trade Lifecycle, David White, CloudMargin's chief commercial officer, we explore how collateral management operations, despite recent UMR-related investment, are still plagued by many challenges- some internal such as bifurcated processes, reliance on legacy technology and a lack of automation and now in recent months – external challenges due to market conditions. Tune in to hear more about how firms can take their collateral operations to the next level through upgrading their tech stack and utilising tools (e.g., collateral optimisation) to strategically and efficiently navigate turbulent market conditions brought on by rising inflation, interest rates and general volatility.
This podcast episode explores:
•How macro market conditions (volatility, rising inflation and interest rates) are impacting collateral management right now.
•How UMR-related investment in collateral management addressed regulatory compliance but now firms need to address operational challenges in the form of legacy tech, siloed collateral pools, rising costs.
•What is optimisation and how can this functionality help firms address challenges related to current market conditions?
•How can new technology solutions (Cloud, SaaS) help firms avoid big - multi-year operational overhauls?
•Now what and where to start? It starts with good data and technology!
Related Reading and Resources:

Register for the upcoming webinar on “Collateral resiliency in a turbulent market” on April 18th.
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Kapitel

1. Introducing David White of CloudMargin (00:01:25)

2. What are the most significant market conditions impacting collateral management today? (00:02:33)

3. Have UMR related investment in collat gone far enough to prepare firms so they are in a position to better address risks created from current macro/market conditions? (00:05:03)

4. What is collateral optimization? (00:06:06)

5. How does collateral optimisation help firms address challenges related to inflation? (00:07:36)

6. How does collateral optimisation help firms address challenges related to rising interest rates? (00:09:24)

7. How does collateral optimisation help firms address challenges related to general market volatility? (00:10:54)

8. How can firms prepare to take their collateral operations to the next level? (Hint! It's about data, tech and cloud) (00:12:53)

9. What advise would you give collateral managers today as how they can best move forward in 2023? (00:14:26)

10. Concluding remarks (00:15:35)