Collateral and Financial Plumbing

Collateral is one of the building blocks on which the financial markets are constructed. Used for a number of purposes-including trading with central counterparties (CCPs), secured funding with market counterparties and central banks, OTC derivatives margining and settlement-the role of effective collateral management in monetizing assets has never been more important.Until now, policymakers have tended to ignore the complex collateral plumbing that is fundamental to lending and enabling growth in the economy. Attention is now focused on this important issue.Manmohan Singh leads you through this complex subject highlighting the importance of financial plumbing and provides a practical understanding of how financial collateral moves across jurisdictions. Also, the discussion on restricting collateral velocity and how it links to monetary policy rate cycle is original.Now with two additional chapters covering the breakdown of financial plumbing and monetary policy transmission, this updated edition provides the insight and wisdom delivered in the first edition of this book, along with the latest techniques and know-how needed when monetizing assets. This is an essential guide to navigating the future as rules and regulations for the global financial markets are redrawn.Through a thorough examination of the role collateral plays in the market the reader will gain a deeper understanding of complex and important themes that are likely to remain topical in the near future.