Eurex on Crises and Repo Liquidity – Macro Environment Webinar – US Funds Cash Collateral Revenue - Market Neutral Performance

View this email in your browser

This Week's Top Stories

Repo Liquidity as a Solution to (Un)cleared Derivatives Cash Margin Requirements

April 23 2020

Entities in the scope of phases five and six of the Uncleared Margin Rules (UMR) will need reliable and efficient access to cash in order to manage their daily OTC derivatives collateral obligations. Yes, the current coronavirus pandemic has delayed the deadlines, but the challenge has not disappeared. Impacted firms need to take this time to better prepare for compliance and take the opportunity to put a complete solution in place. A guest post from Eurex.

Buy-side scrutinizes market neutral performance under stress (Premium)

April 22 2020

In mid-March, there was a call for liquid alternatives to stand up and be counted, with hopes and expectations that markets would see a number of diversifying strategies delivering good results in a crisis. Results for the turbulent month of March are coming in and the diversification thesis is holding up. We rounded up key points from the buy-side about what March performance indicates.

Client Webinar April 29: The Macro Environment, COVID-19 and Office Hours

April 21 2020

Open to all subscription clients, this Finadium webinar will provide a market update on the macro investing environment. A brief presentation will be followed by time for informal questions.

Finadium: US Mutual Fund and ETF Revenues from Securities Lending Cash Collateral Pools

April 21 2020

A new report from Finadium quantifies how much money is at stake for US fund complexes in their securities lending cash collateral fees. In a high interest rate environment, fund complexes can charge fees and ensure that their clients earn a profit on cash funds. In a low interest rate environment, charging even modest fees can be difficult if not impossible.

What needs to happen for US repo to regain spreads? (Premium)

April 20 2020

At the end of 2018, US repo traders told us that they were no longer worried about liquidity but spreads were a big concern. Calendar year 2019 saw liquidity pitfalls but reasonable spreads, and sometimes terrific spreads. In 2020, the COVID-19 epidemic has seen the exact reverse unfold, with spreads now poor while the Fed provides ample liquidity. Will the Fed pulling back let spreads come back into the US repo market?