Managing Collateral

The default of Lehman Brothers in 2008 brought attention to counterparty risk and collateral management in the financial markets, to the extent that they are now board-level issues for both banks and fund managers. The regulatory reform that is underway, and which resulted from the need to reduce systemic risk, has, in many ways, increased the number of challenges related to accessing and managing collateral. This Learning Curve explores those challenges and examines how they can be addressed.