Certification in Collateral Management

Course Overview: 

What is known as "collateral" is the set of assets, in the form of securities or cash given as security by the debtor to the creditor in order to hedge the credit risk of the financial transactions negotiated between two parties. In case of default by the debtor, the creditor is entitled to retain the assets given as collateral in order to compensate the financial loss suffered.

The use of giving collateral, or "collateralising" operations, has undergone constant development in recent years and the financial crisis of 2007-2008 of course resulted in even greater development. The implementation of the Basel 2 agreements, which reduce the capital requirement for operations covered by collateral, also contributes to the interest in this practice. The management of available collateral, which can be used as security for a debt, thus becomes a strategic issue for the actors.

Course Objectives: 

  • Define collateral management, why it exists and the drivers behind it.

  • Learn of the legal and technical process, economics issues and market drivers affecting the profession. 

  • Understand the business and how it operates within regulatory challenges and guidelines.

  • Explain the rationale and current best practice functioning of Collateral Management