Umbrella credit and collateral services
Reduce the cost of credit lines and collateral management
Expand the flexibility and efficiency of your credit and collateral by using an umbrella account structure. This account structure groups a set of accounts together in order to share a single credit line, or to pool collateral.
Once you have chosen the accounts to be placed under the umbrella structure, the collateral held in these proprietary accounts can be pooled and made available for credit lines for any account held within the umbrella structure, including client accounts and fund accounts.
Monitoring of both the credit line throughout the participating accounts, and the available collateral, is fully automated and can be checked online at any time.
When you set up an umbrella account, you have full control to decide how each account is used:
- not part of the umbrella credit structure
- can use the umbrella credit structure and the shared collateral pool
- can use the umbrella credit structure and its own collateral pool
- does or does not contribute its collateral to the shared collateral pool.
Benefits of the Umbrella credit and collateral services include:
- management of one collateral pool only instead of many accounts
- increased adequacy of credit lines on individual accounts based on usage: the credit lines granted will be fully available to all the linked accounts
- simplified collateral management: to meet requirements for collateral, clients can at any moment simply change or move the collateral value on any of the accounts contributing to the collateral pool rather than freezing it permanently on the specific accounts that require credit
- collateral optimisation: individual accounts can access a single shared collateral pool fed by assets available in many client accounts. By pooling collateral, clients can use the entire collateral pool to support activity in any single account under the umbrella structure
- service flexibility: clients can segregate assets and still benefit from group credit and collateral facilities.