Collateral Management: A Guide to Mitigating Counterparty Risk (Wiley Finance) - Hardcover

Simmons, Michael

Hardcover

ISBN 10: 0470973501 ISBN 13: 9780470973509

Publisher: Wiley, 2019

Synopsis

Insight into collateral management and its increasing relevance in modern banking

In 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.

About this title

From the Back Cover

Collateral Management, Demystified

In today's risk-focused financial landscape, there is a clamour for practical information about the once-esoteric practice of exchanging collateral on financial products. Risk managers in organizations large and small, both on the buy-side and the sell-side, must bring collateral management to the fore to mitigate exposure. Collateral Management is a response to this intense demand from one of the industry's leading experts on the topic.

Collateral Management is not a theoretical text. Rather, this book dissolves the topic of collateral management into its logical components, providing day-to-day guidance on how to implement this important risk mitigation strategy. With over 150 diagrams, more than 600 glossary entries, and numerous example calculations, Collateral Management provides professionals with the unique complex of knowledge and tools needed for a contemporary approach to collateral.

Risk managers, lawyers, securities custodians, consultants, and financial software professionals alike will benefit from the comprehensive information in this text. Readers will master the principles and practices that apply to collateral for sales & repurchases (repo), securities lending & borrowing, and OTC derivatives. Today, firms of all sizes are actively using collateral as a major risk mitigation measure, and this guide to applied collateral management delivers complete coverage that practitioners need.

From the Inside Flap

Collateral management has become a high-profile practice in the financial services industry, rising to prominence after the 2008 Global Financial Crisis. In the past, only the very largest firms engaged in regular collateral management, and often on only a biweekly or monthly basis. Now, firms of all sizes are recognizing the importance of mitigating risk by establishing daily collateral management practices for a wide range of financial products; such practices are increasingly forced by regulatory authorities.

In Collateral Management: A Guide to Mitigating Counterparty Risk, bestselling author Michael Simmons provides an in-depth practical guide to understanding and addressing the issue of collateral. Managers, legal professionals, and consultants alike will benefit from this detailed examination of the day-to-day practices and considerations involved in collateral management.

Edition details

• Publisher: Wiley
• Publication date: 2019
• ISBN 10: 0470973501
• ISBN 13: 9780470973509
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 752