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Collateral Management

Disruption to the derivatives market is underway as regulations such as the Dodd-Frank Act, European Market Infrastructure Regulation, and Basel III increase the scarcity of available collateral. This has intensified focus on improving collateral management practices as a means to increase operational effectiveness, decrease counterparty credit risk, and control the costs of trading and collateralizing swaps. The way asset managers adapt their collateral management discipline will impact their ability to deliver investment performance.

ABLS provides comprehensive and operationally efficient collateral management services designed to control risk, improve front office decision making, and minimize the impact on portfolio performance. We work to insulate clients from the burdensome investments required to comply with complex collateral requirements, while they focus on generating investment returns.

Control Risk

  • Custom technology maximizes straight through processing and connectivity with multiple counterparties via ABLS Infomediary®, reducing operational risk
  • Manage the counterparty credit risk inherent to derivatives trading by ensuring exposures to counterparties are managed
  • Robust reporting provides key metrics, such as counterparty exposure and collateral transactions

Improve Front Office Decision Making

  • Increase visibility into collateral usage across counterparties
  • Real time views into settlement status, inventory, and collateral positions
  • Access to ABLS collateral management business expertise

Minimize Impact on Portfolio Performance

  • Select the optimal collateral based on client defined hierarchies and counterparty exposures
  • Identify and pledge “cheapest to deliver” collateral based on client defined parameters
  • Ensure collateral received complies with eligibility criteria
  • Reduce amount of over-collateralization with counterparties

ABLS Collateral Management Program

The ABLS Collateral Management program covers the entire collateral lifecycle, allowing us to support the most complex derivatives trading strategies. Collateral management services also seamlessly links with ABLS fund accounting and custody, providing additional efficiencies and risk management.

ABLS's Collateral Management program is supported by a custom technology platform designed to improve your operating model, incorporate industry best practices, and deliver real-time data reporting.

ABLS services multiples participants in the collateral lifecycle, including CCPs, FCMs, and asset managers. Our clients benefit from the expertise gained.

Clients additionally benefit from ABLS's measurably superior which incorporates our operational expertise, local relationship management and market intelligence into client-specific relationship plans.


ABLS Suite of Collateral Services