Global Financial Markets Institute»Collateral Management

Collateral Management

One of the major aftermaths of the credit crisis is a heightened focus on counterparty credit risk. Collateral helps mitigate this risk. This course focuses on the management of that collateral. Many of the trading desks give rise to collateral management. Work flows from tracking a trade, margin, non-delivery and escalation processes are all examined. Terminology and documentation will be addressed. Risks surrounding collateral management will be identified along with new capital adequacy rules.

Course Objectives

By the end of the course, participants will be able to:

  • Describe and explain the workflow required in collateral management
  • Discuss applications that give rise to collateral management
  • Explain counterparty credit risk (CCR)
  • Discuss documentation required
  • Highlight issues arising during the collateral management process

Suggested Prerequisites:Lifecycle of a Derivatives Trade, Lifecycle and Clearing of an OTC Trade and basic credit knowledge is assumed

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: N/A

Recommended CPE Credits: 7