Liquidity and Collateral Management
Karson provides cash, HQLAs and liquidity-bearing RISCMTP-Notes to banks to manage balance sheet liquidity and collateral requirements in relation to their LCR, NSFR and client securities financing needs. Karson provides its liquidity and collateral solutions using standard market contracts, including Global Master Securities Lending Agreements (GMSLAs), Global Master Repurchase Agreements (GMRAs) and ISDA-based total return swaps with Credit Support Annexes (TRSs and CSAs, respectively). Karson will also accept a wide range of liquid and illiquid collateral to support client obligations.
Derivatives Collateral Management
Derivatives collateral requirements have exploded in the post-crash era, not only in the amount required under new regulations (e.g., Dodd-Frank and EMIR), but in terms of administration and complexity. The Karson Platform enables clients to meet their myriad counterparty and regulatory requirements with optimal efficiency by combining a best-in-class account management and administration capability with collateral upgrade and financing services to support initial margin and variation margin requirements.
Capital and Risk-Based Capital Management
Capital and regulatory risk-based capital (RBC) adequacy are a major concern of regulators and therefore a major driver of bank financing needs and performance. Karson provides banks with a unique range of solutions such as loan-backed securities (LBS), for de-risking individual assets or asset portfolios and delivering financing and KTastrophe Notes, to support Total Loss Absorbing Capacity/Minimum Requirement for Own Funds and Eligible Liabilities (TLAC/MREL).