Training - Collateral management

How long does the training course last?

2,50 hours(s)

In which language(s) is the training course taught?

EN FR

When will the next session take place?

Who is organising this training course?

PwC Academy leverages PwC’s expertise to deliver world-class learning experiences to organizations across all industries and regions. Our objective is to help professionals develop their knowledge, skills, competencies, and expertise, enabling them to support and drive the growth of their organizations.

Who is the training course aimed at?

This course is intended for anyone wishing to continue their learning beyond the foundation module and explore in greater depth the collateral management techniques employed by investment managers and financial market participants.

What are the aims or the skills being targeted?

Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Let's demystify these!

In close collaboration with PwC's subject matter experts, PwC Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.

With this second module, participants will further dive into the realm of collateral management by exploring the mechanism behind this activity such as type of collateral, margin call and other relevant features. In a second step, the focus will be on the operational lifecycle and the relevant key documentation.

By the end of this training, participants will be able to:

understand the fundamental characteristics of collaterals;
determine the types of collateral required for various scenarios;
gain a detailed understanding of collateral operations and their lifecycle;
understand the associated risks and protection framework.

What does the training course cover?

1. Refresher on collateral management foundation module:

Definition, purpose and key functions of collateral management
Role of collateral in reducing counterparty risk and enhancing liquidity
Types of collateral: cash vs non cash, acceptable vs unacceptable collateral, collateral acceptability and haircuts
Comparison collateral and margin: margin in derivatives contract vs collateral in financing agreements
Initial margin and variation margin

2. Collateral management lifecycle

Process of posting collateral in response of margin calls or credit agreements
Role of clearinghouses, CCPs and bilateral arrangements
Monitoring collateral value to ensure adequacy and minimize risk
Frequency and triggers for margin calls
Substitution of collateral during a transaction's lifecycle

3. Collateral management documentation

Key documentation: ISDA CSA, GMRA and GMRA annexes
Enforceability, dispute resolution and triggers

What other information is useful to know?

This training is coordinated by Laurent Dubois, Director at PwC Luxembourg.

Laurent Dubois is a director at PwC Luxembourg with over a decade of experience in the banking industry and several years in asset management on both product and corporate sides. Since joining PwC in 2008 within the audit practice, he has specialised in alternative investments, focusing on private debt structures and fund of funds. Laurent has worked closely with leading promoters and asset managers, gaining extensive knowledge of the asset management sector and its challenges. He holds the title of Réviseur d’entreprises agréé in Luxembourg and has contributed to projects for clients such as Ardian, Lombard Odier, Degroof Petercam, and BBH.