Course Overview

This course looks at Collateral Management in OTC Derivatives as well as Repos and Securities Lending and Borrowing. Risk identification, Control, Documentation, types of collateral, gross and net exposure and other practical aspects are covered as well as the conceptual framework and practical problems for example the treatment of corporate actions on a borrowed or lent position.

Who should enrol?

This is an Intermediate to Advanced Course.

  • Money Market and Interest Rate Sales

  • Interest Rate Derivatives Traders

  • Institutional Fixed Income Asset Managers

  • Structured Product Sales Teams

  • Corporate and Investment Banking Staff

  • Legal and Compliance Teams

  • Senior Dealers

Course curriculum

    1. Course Overview & Resources

    1. Introduction

    2. Benefits of collateralised trades

    3. Why does collateral management exist

    4. Fundamental concepts

    5. Basic definitions and concepts

    6. Collateral in focus

    1. Initial margin and haircuts

    2. The impact of haircuts on margin

    3. Haircuts - Initial margin of a repo

    4. Variation maintenance margin of a classic repo

    5. Early termination and repricing of a sell / buy back repo

    1. Collateral and the generic cash flow cycle

    2. Life cycle of collateral

    3. Collateral life cycle example : Classic Repo

    4. Life Cycle example continued : Additional Considerations

    5. Life Cycle : Significant Issues

    1. Principals of Collateral Optimisation

    2. Importance of Collateral and Collateral Optimisation

    3. Risks to Collateral Optimisation

    1. Collateral scarcity and velocity

    2. Collateral Scarcity & the Impact of re-use

    3. Collateral Velocity

    4. Collateral Re-use and Re-hypothecation

    5. Risks Associated with Re-use and Re-hypothecation

    6. Collateral Swaps

About this course

  • $499.00
  • 44 lessons
  • 4 hours of video content

Topics covered

  • The importance of collateral

  • Measuring credit exposure and Regulatory impact

  • Transactions that require colateral and Initial margin methodologies

  • Collateral optimization

  • Collateral scarcity and velocity

  • Collateral and the liquidity cycle


Need to train your team?

Train any number of team members across any number of departments for 12 months when you sign up for our corporate license offer, click below to get in touch with our team.


Meet who you will learn with

Billy Viljoen

Course Director

Billy has over 20 years of experience in the financial markets. He currently acts as a consultant to some of South Africa’s major corporate clients on treasury risk management. He has held senior positions at two of South Africa’s major financial institutions both in South Africa and New York with the most recent being director and head of FX Options sales at ABSA Capital where he was responsible for the bank’s FX structuring business across South Africa. He is considered a subject matter expert in foreign exchange derivatives Billy through his years has obtained unparalleled dynamic hedging experience as a corporate client advisor and derivative structurer to clients located across Africa, Europe and the Americas.

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