21 Apr Global Collateral Risk Portal
Global Collateral Risk Tool
Davis Polk has a new portal chock full of tools for Risk Managers. They’ve included one of the best one-stop resources I’ve seen online in their global collateral risk tool.
Posting Collateral Around the World
Now that we’ve finally got Europe and the US on the same page (well, reading the same book at least), MHDS asks all their clients to check their collateral models for cross currency posting (i.e., posting a EUR bond against a USD position), as well as make sure your calibrations are correct for haircuts. For background information and examples read the Visual Memorandum on the Liquidity Ratio, click here. The memo gives users insights into how the regulators viewed risk internally and cross-border.
Although there could be many changes between today and implementation, given a new administration, #brexithard or #brexitsoft, TPP and trade relations for today, this tool is a must for any employee looking to make sense of global risk and the way BASEL III attempts to measure it and collect collateral to keep the system safe.
If you have any questions, click on the On Tap Knowledge Link to your right (Sidebar).
That’s all for now, just wanted to get this new link out there. I think it’s cool and I hope you find it useful too.