New Headwinds Shaping Buy-Side Treasury

By April 7, 2020 No Comments

With volatility peaking in the last four weeks due to escalating COVID-19 pandemic concerns, asset managers have witnessed a spiralling effect on their liquidity and collateral books across counterparties. With a threefold increase in the operational dynamics of cash and collateral sweeps, fund managers navigating this environment must seek to strategically execute collateral and margin management.

While managers with derivative exposures simultaneously handle daily margin calls with their FCM and PB counterparties, credit managers face the uphill task of striking the right balance across deployed collateral. It is essential that managers find this balance to ensure that new markdowns in their relatively illiquid books do not severely impact their economic relationships with counterparties.

Key Essentials of Buy-Side Treasury

Funds that have streamlined workflows and SWIFT gateways with near real-time settlement dynamics stand fully hedged on the operational stress this pandemic has caused. However, those operating in more traditional models will need to re-evaluate basic treasury operations, bolster overall transparency and put into place an active liquidity forecasting model to track basis risk across their books.


About IVP Treasury

IVP Treasury assists buy-side managers with building an institutional paradigm for both treasury and settlement operations. The platform not only generates full transparency and analytics around cash, collateral and cost of carry, but it also helps funds build forecasting and optimization models in order to maximize efficiency across the treasury function.

To learn more about how IVP can help funds bridge this gap on the treasury vertical, please visit IVP TREASURY or contact

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