Collateral Management

Unlock Value with Collateral Optimization

Our experts explain how optimization can minimize costs and free up inventory to enhance returns.

December 2020

For buy-side institutions, collateral optimization represents a significant opportunity to create efficiencies and enhance returns.

In a revenue-constrained environment driven by persistently low rates and increased margin requirements, sophisticated collateral optimization has moved past cheapest-to-deliver strategies. Leading institutions now use algorithms to minimize the cost of meeting collateral requirements. But technology is just one piece of the puzzle.

A strong foundation of data is critical to the success of the program, and tools to optimize margin can ultimately have a big impact on the bottom line. Done right, institutions can not only minimize costs, they can unlock value in their portfolios by capitalizing on newly freed up inventory.

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Collateral+ Podcast Series:
Unlock Value with Optimization

Owen Nichols and Paige Pratt from our Financing Solutions and Collateral Optimization group discuss the themes from the Beyond Optimization paper and how our clients are approaching optimization in light of UMR.