Fri, Nov 24, 2017
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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l