LCH.Clearnet broadens range of collateral 19 April 2012London Reporter: Georgina Lavers
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LCH.Clearnet will accept Ginnie Mae mortgage-backed securities in an effort to widen their existing collateral range.
LCH.Clearnet’s recently established a Collateral and Liquidity Management (CaLM) service, with the aim of offering efficient, centralised collateral management services to clients.
Approximately $260 billion of these securities will be eligible to be pledged as initial margin.
“We consider Ginnie Mae mortgage-backed securities among the most secure investments in the global capital market, and we’re pleased to be able to offer clients as much flexibility as possible to meet their margin requirements,” said Andrew Howat, Head of Collateral and Liquidity Management at LCH.Clearnet.
“This addition to our range of acceptable collateral reinforces our strategy to maintain the highest standards of risk management, whilst demonstrating our ongoing commitment to developing our business offering, both in the US, and for our buy side clients.”
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