BNY has integrated Morningstar DBRS into its Global Collateral platform, a move that aims to improve eligibility customisation and increase the number of rated securities available for triparty collateral allocations.
By working with Morningstar’s credit rating agency, BNY claims that it has unlocked “a substantial volume” of Canadian fixed income and US structured fixed income assets, which can now be evaluated for allocation to trades with rating criteria on its collateral management platform.
The integration builds on BNY’s ongoing efforts to set up eligibility frameworks to increase collateral sources available to its clients. This includes the recently broadened support for agency mortgage-backed securities and collaterised loan obligations. In total, BNY Global Collateral clients have access to four rating agencies to determine eligibility, giving better risk management and confidence in collateral allocations in times of market stress.
