Hedge funds under pressure to manage collateral risk

Hedge funds and other asset managers are expected to boost demand for collateral management services due to imminent regulation that will raise capital reserve requirements against counterparty credit risk, according to Citi. “With Basel III being implemented in 2013, banks are putting a lot of pressure on counterparties. The main ones are hedge funds, but asset managers and insurance companies are also under pressure to implement collateralised relationships," says Sam Ahmed, Cit…