Collateral Management Bootcamp (One Day)

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Who Should Attend

• Those considering entering into collateral management and need to assess the practical business implications
• Those new to the collateral business, needing an introduction to the collateral process for their day-to-day work
• Those who work in the following areas will benefit from this course:
• Operations / Collateral Management
• Prime Brokerage
• Credit Control
• Risk Managers
• Front Office
• Internal Audit
• Para-legal and Documentation
• Repo and Securities Lending

Collateralisation

Collateralisation is increasingly recognised as an important method of credit enhancement and risk mitigation. Many banks now require trades to be collateralised. Whilst helping to reduce credit risk, collateral management exposes the firm to operational, legal, liquidity and price risks. Understanding and managing these risks is essential to any institution seeking to benefit from collateral management.

Lombard Risk

Lombard Risk has in-depth knowledge of the risk management industry from the market risk, credit risk, and operational risk perspectives. Our training and consultancy can help improve your company's performance by achieving higher trading revenues and profits, increased efficiency, and improved flexibility. Courses can be tailored to meet the objectives and ability of the target audience.

In addition to consultancy and training, Lombard Risk is an established provider of financial trading and risk management software and leading market data services. Since our inception in 1989, we have done business with 50 of the top 100 banks worldwide.

The Lombard Risk range of software includes Firmament Collateral, the intranet based collateral management solution. For more information on this software or other options for consulting and training, please contact your regional Lombard Risk office.

One-day course

This one-day course is designed for individuals who need to improve their understanding of the techniques, terminology and risks involved in collateral markets. Whether you are responsible for setting up the collateral management process or involved with handling collateral, this course will help you understand:

• Why banks seek to collateralise relationships with counterparties
• How collateral management works
• The terminology & mechanics of the collateral market
• The risks that collateral management generates and how they can be controlled
• What is normal market practice
• The documentation used
• The role of the collateral manager
• Whether the advantages outweigh the costs

This course includes a series of case studies that emphasise the issues under discussion and the problems that may arise from collateralising trades.

Morning Session

Afternoon Session

The Purpose of Collateral Defining Portfolio Colateralisation How Collateral works in theory and in practice Main advantages of collateralisation Core collateral functions The Collateral Workflow Generic systems overview Credit risk vs Operational risk The Collateral Team Roles performed by collateral team Collateral working parternships Notification timing and Margin call notice Non delivery vs Default Escalation process Documentation Credit support documents What is used and what you negotiate Enforceability Collateral terminology Collateral requirement Independent amounts (initial margin) Application of VaR Haircuts, (Valuation Percentage) Threshold amounts Minimum transfer amounts Interest on collateral

Repo Collateral Management What is a Repo? Structure and Terminology Types of Repos Risks Regulatory Relief What it is The conditions that are needed Why it is important to banks Implications to third parties History of Collateral Management History of Collateral Management The Story so far Assets used in the market Future of Collateral Management Cross Product Margining Dispute resolution and reconciliations Tri-Party Agreements Operational case study Compile legal terms, trades and collateral to calculate a margin call requirement in Colline

For further information please contact our Training Administrator at