You should look at collateral selection as an opportunity. It is not simply about finding and posting any acceptable securities – it’s about choosing the right assets to minimize the performance drag that the regulation may introduce on your portfolio.
Are you posting the most suitable assets as collateral, or could those securities be put to better use elsewhere?
When determining what to post, you can prioritize based on factors such as which securities are cheapest to deliver or hardest to utilize, what other obligations you may have and if you can earn incremental yield on assets by lending them out through securities finance.
In making informed decisions concerning these matters, Orchestrator can help.
Optimizing your Collateral with Orchestrator
Orchestrator3 is our online collateral optimization tool which enables you to efficiently manage your collateral balances and processes in four easy steps:
Eligibility: Screen your portfolio of existing assets for their potential use as margin
Scenario Analysis: Determine the most suitable securities to post as collateral, stress test your margin liabilities and identify new opportunities to fund your inventory
Optimize: Use this analysis to meet your margin obligations and regulatory requirements in optimal fashion
Settle: Automatically generate instructions to deliver, substitute and recall assets with all of your counterparties
With Orchestrator, minimize the drag, maximize your efficiency.
3Currently in development