Having experienced the volatility of last year, firms are now more familiar with the liquidity issues that this has caused. Margins have risen at the same time as the cost of borrowing has increased.

Firms are now looking for solutions to help them manage their liquidity requirements.

In the following eBook we look at the issues that have been seen in more detail; what happened and why. We then consider the ideal solution for liquidity management; what functionality should be included and any particular difficulties involved in providing this.

Priorities for managing liquidity requirements:

  • Raise money and increase borrowing
  • Reduce portfolio size and scope
  • Stop or reduce hedging activity
  • Stop or reduce new trades (proprietary or not)
  • Switch to non-cleared bilateral deals, instead of exchange cleared derivative contracts (dust off those old ISDAs again..)