Tue, Mar 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers June 2012

Q&A - Sapient: Hedge funds must face changes in central clearing and in collateral management.

Sapient: Hedge funds must face changes in central clearing and in collateral management

Mark Israel

Mark Israel helps lead the Investment Management practice at Sapient Global Markets, in Boston. Sapient is a consultancy firm that tackles key issues within financial services. It does a lot of work with regulatory bodies, central banks, and other market participants such as clearing houses.

Israel talks to Opalesque about some the operational challenges that new hedge fund managers must deal with. He also comments on the hedge fund industry's ability to recycle.

Opalesque: What operational challenges must new hedge fund managers deal with nowadays?

Mark Israel: One of the things that we are seeing right now from the operational side is the changes in central clearing and in collateral management, which will have an impact on anyone who trades derivatives, including hedge funds.

Right now, there are sweeping changes of going into central clearing and how that is going to affect tri-party agreements all the way through to their ISDA agreements, and what they're dealing with, and then how they deal with the collateral, and how they actually manage their collateral going forward. We see that creating an interesting dynamic.

Q: Tell me more about this new dynamic.

Mark Israel: That dynamic affects a few things. One, it affects all their processes all the way up to the portfolio manager.

"That means people who make the investment decisions will have to change their measurement techniques."

We are seeing people take the collateral and the swap in the same strategy and same measurement strategy, so they can ac......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner