Tag: collateral transformation
Not toxic, just “lazy”
A short article in Risk magazine details a new practice amongst some of the larger swap dealers, of posting so-illiquid-as-to-be-solid assets as initial margin; Risk quotes the banks involved as putting “lazy” assets to work. Banks sign bilateral agreements with each other, arranging to post a static portfolio of assets to a third-party account. The […]
IOSCO Outlook Report: more interesting than it sounds
IOSCO has presented its Risk Outlook, the first of an annual series. The 84 page report aims to highlight important systemic risks and trends in the global securities market. In an admirable example of management-speak compression, IOSCO chairman Greg Medcraft said of the report “I see it as a great example of IOSCO being proactive, […]
FSB to report on Margin for Non-Cleared Trades in April 2013
The Financial Stability Board (FSB) has published a press release regarding the meeting which took place in Zurich on 28 January 2013 to discuss vulnerabilities affecting the global financial system and progress to strengthen global financial regulation. On the subject of over-the-counter (OTC) derivatives reforms, the FSB confirmed that, in April, it will submit to […]