Buy-side firms seek margin flexibility via CSA changes

Collateral transformation facilities being lined up but are not being used

john-griffin
John Griffin, Hartford Investment Management Company

Buy-side firms are preparing for increased margin demands by trying to give themselves extra flexibility, according to John Griffin, head of derivatives and trading in the risk management department at Hartford Investment Management Company.

In some cases, firms are amending collateral agreements to allow a wider range of assets to be posted, Griffin told the Risk USA conference in New York today. They are also lining up so-called collateral transformation facilities, which allow corporate bonds

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