Collateral is the currency of the capital markets and flows through more transactions than ever before. The buy side is looking at a new horizon, where new thinking, approaches and strategies are key to a successful future, says Staffan Ahlner of BNY Mellon.
Structural shifts in the market are changing business models in the financial industry. Though we have not yet seen the full impact of the various regulations, the larger, more sophisticated buy-side clients are increasingly exploring how to utilise triparty for their collateralization needs, looking to the techniques that the sell side has been using over the past two decades. (This article originally appeared in the Securities Lending Times, Collateral Management Annual, 2015. It is being reproduced here with approval from the publisher.).