Synopses & Reviews
Collateral Management: A Guide to Mitigating Counterparty Risk is a practical guide to the hugely important topic of collateral management. In it, bestselling author Michael Simmons provides the ‘nuts and bolts’ of collateral management, making the very positive connection between the conceptual need to mitigate counterparty risk, and what must be done in practice in order to achieve it.The book will provide complete coverage of the topic, paying particular attention to issues such as what internal records must be maintained and in what types of systems to enable efficient collateral management, what day-to-day procedures must be used in making and receiving collateral calls (including pre-worked examples) and the settlement-related issues relating to effecting incoming and outgoing movements of cash and securities collateral. The combination of new players in and increased frequency of collateral management around the globe means that basic knowledge of the subject is in short supply and big demand. This is supported by an increase in interest in the authors own collateral management course, and in the many jobs advertised currently by financial services firms are in collateral management jobs.
Synopsis
Insight into collateral management and its increasing relevance in modern bankingIn the wake of recent financial crises, firms of all sizes have adjusted their policies to incorporate more frequent instances of collateral management. Collateral Management: A Guide to Mitigating Counterparty Risk explains the connection between the need for collateral management in order to alleviate counterparty risk and the actions that firms must take to achieve it. Targeted at middle and back office managers seeking a hands-on explanation of the specifics of collateral management, this book offers a thorough treatment of the subject and attends to details such as internal record management, daily procedures used in making and receiving collateral calls, and settlement-related issues that affect the movements of cash and securities collateral. An expert in financial topics ranging from trade lifecycle to operational risk, author Michael Simmons offers readers insight into a field that, so far, is struggling to produce enough expertise to meet its high demand.
- Presents hands-on advice and examples from a bestselling, internationally renowned author who introduces his third book on operations and operations-related activities
- Explains the relationship between collateral management and preventing institutional defaults, such as the recent Lehman Brothers downfall
Since 2008, firms have recognized and embraced the importance of collateral management, but this book will provide practitioners with a deeper understanding and appreciation of its relevance.