Collateral Transformation's Influence on Optimization

Supurna VedBrat, BlackRock

The March issue of Waters includes the second of a two-part feature on collateral optimization. One topic that came up time and again during the interviews was collateral transformation, which is seen as a possible bridge to swap execution facility (SEF) compliance.

Transformation is a service provided by, among others, JPMorgan, State Street, BNY Mellon, Deutsche Bank, Goldman Sachs, Barclays, and Bank of America Merrill Lynch, in which a firm can trade its riskier collateral for that with more