Collateral Management Best Practices
This one-day program examines industry accepted Collateral Management Best Practices as a follow-up to the Collateral Management Fundamentals program. The scope of these best practices include collateral for repo and securities lending transactions, cleared and uncleared derivatives and other products, and TBA’s.
In response to the 2008 global financial crisis, regulatory mandates in the OTC derivatives markets have required participants to implement changes to the way that uncleared derivative contracts are margined. In this class, participants will gain a solid understanding of the general structure and foundations of Initial Margin and Variation Margin for Uncleared Derivatives.
Learning outcomes for participants include the ability to understand advanced critical concepts for collateral management such as how collateral legal agreements are negotiated and structured, marking-to-market and best practices for position valuations, calculation of credit risk, initial and variation margin calculations, determining collateral eligibility and profiles, concept of cheapest-to-deliver, collateral eligibility and selection criteria. Recent trends on the part of industry organizations to facilitate these changes will be discussed.