Collateral usage is one of the most commonly used risk mitigation techniques in lending, securities trading, and derivatives market payment and settlement systems. Collateral Management evaluates the economic consequences of term trades, pending interest rate movements, and anticipated changes in the loan portfolio composition (such as subscriptions, redemptions, asset reallocation strategies and investment updates).

Datamatics has provided software solutions that identify and assess the risk in collaterals. Some highlights of our solutions include -

• Tracking the cash flows
• Valuation of the collateral at market rates
• Valuation of collaterals under what-if scenarios (interest-rates, currencies etc.)
• Daily monitoring of market
• Collateral management in case of repo, reverse repo deals