World Finance Informs

Collateral is becoming an increasingly important part of how financial institutions manage liquidity across repo, derivatives, securities financing and central clearing activities. As these markets become more interconnected, the ability to access and deploy eligible assets efficiently is taking on greater strategic importance. Collateral mobility is therefore moving beyond a back-office consideration and becoming part of broader liquidity management. Collateral Moving Closer to the Centre of Liquidity Management Financial institutions may hold substantial pools of securities and other eligible assets, but ownership alone does not guarantee that those assets can be used where they are needed. An asset can be constrained...