Michael Bryant, Managing Director, said âCollateral management within banks has typically grown up along product silos. Many banks are now trying to provide an integrated cross-product collateral platform, often with cross-agreement netting. This can present significant organisational and systems challenges. The growth of hedge fund business means that banks are also looking to improve their systems and methodologies with respect to hedge fund margining, for example by implementing VaR or stress testing approaches. Hedge funds themselves are also increasingly investing in collateral management infrastructureâ.
InteDelta has worked with a number of institutions to help improve their collateral policies, methodologies, systems and organisational structure. This will be a particular focus for the firm going forward.