Tag Archives: Basel III

Global Collateral risk tool

Global Collateral Risk Tool

Global Collateral Risk Tool

Global Collateral Risk Tool Davis Polk has a new portal chock full of tools for Risk Managers.  They’ve included one of the best one-stop resources I’ve seen online in their global collateral risk tool.   Davis Polk has always done good work.  I give them Kudo’s and I’ll do so again now.  Cut this tool particularly

3 reasons initial margin & leverage ratio are unrelated

3 Reasons Initial Margin is Unrelated to BASEL III’s Leverage Ratio

APPLES AND ORANGES BASEL III plans to apply the leverage ratio to all collateral, including initial margin on cleared derivatives transactions (cleared at a clearinghouse).  Swap Market participants are looking at cost increases estimated at 60%.  A decision such as this will mean sell side will have to add on that capital charge, giving sell