Collateral & Financing
Collateral-based financing solutions.
Collateral and financing arrangements sit within our wider institutional offering, coordinated with custody and trading activity rather than handled in isolation.
Typical scenarios
The situations below describe common reasons institutions consider a collateral based arrangement. They are illustrative and do not represent specific client outcomes.
Financing against holdings
- Eligible holdings are considered as collateral for a financing facility
- The arrangement sits alongside an existing custody relationship
- Terms are agreed in client documentation before any facility is drawn
Managing leverage
- A facility can support leverage without altering long term positioning
- Coverage and review points are set out in advance
- Monitoring runs alongside the wider mandate
Liquidity against collateral
- Short term liquidity needs can be met against pledged assets
- Collateral and coverage are reviewed on a defined rhythm
- Drawdown and repayment follow documented procedures
Illustrative scenarios only. Eligibility and terms are confirmed in client documentation.
How the process works
A collateral based arrangement is handled in defined stages, so both sides know what happens at each point before anything is committed.
Eligibility review
We begin by reviewing whether the proposed arrangement is suitable for the client's circumstances and eligible collateral.
Collateral assessment
The collateral proposed is assessed against the criteria set out for the facility, with coverage and treatment described up front.
Terms and documentation
Commercial terms and operational responsibilities are recorded in facility and custody documentation before anything is drawn.
Ongoing monitoring
Coverage, review points and any changes to the arrangement are monitored on a defined rhythm after the facility is live.
Illustrative terms overview
A high level view of the elements typically covered in a collateral based facility. It is a summary only and not a set of agreed terms.
Illustrative summary only. Terms are confirmed in client documentation.
Risk controls
Collateral based financing is supported by clear procedures and records. The aim is a structure where terms, responsibilities and collateral treatment are understandable and consistent in day-to-day operation, with review built in from the start.
Illustrative description only. Specific controls and responsibilities are set out in client documentation.
Discuss a financing requirement
Speak with our team about how a collateral based arrangement could fit within your institution's wider requirements.