Collateral Management

Collateral+ 2021 Symposium

New approaches to collateral and financing are emerging, representing a tremendous opportunity for the buy side.

March 2021

In early March, we gathered more than 20 expert speakers for a wide-ranging and engaging discussion on the future of collateral management and financing. Here are our top five takeaways from the two-day event.

1. An evolution in collateral management is needed for the buy side.

Traditional services, especially those in the collateral space that were originally built around the needs of sell-side firms, are not well suited to the unique needs of the buy side. End-to-end offerings with best-in-breed solutions through your global custodian can reduce complexity and enhance your overall portfolio management strategy.

2. Optimization is a journey.

Few institutions are in a position to flip a switch and be fully optimized. Achieving optimization is a journey that starts with planning, and having the right tools and infrastructure in place is critical.  Sophisticated portfolio optimization strategies can significantly reduce opportunity costs and help drive yield enhancement. A trusted partner with the right experience can help identify the appropriate solutions for your needs and assist in creating an action plan that suits your situation. Take advantage of their experience.

3.  New infrastructure solutions and peer-to-peer marketplaces will empower the buy side.

Integrated front-to-back office capabilities to improve efficiencies and standardize workflow, combined with peer-to-peer marketplaces to widen access to liquidity, offer the potential to create real growth.  Multi-asset class platforms and venues enabling flexible trading arrangements and access to vast networks of participants can drive opportunities that don’t exist today.

4. Think of collateral as an asset class.

Don’t leave money on the table. Tap into the extensive liquidity toolkit available to you. Cash, collateral and securities lending solutions are converging. Now is the right time for the buy side to look at collateral in a new light and better understand the full suite of liquidity options, all with the goal of achieving better performance.

5. Digital assets are an accelerator.

Interoperable digital platforms, tokenization of cash and securities and the ability to trade new types of financial assets will drive a radical shift in capital markets. These capabilities are finally just around the corner and could drive significant opportunities for the buy side.