Tool Helps Monitor Collateral Exposure

September 14, 2012 ( – Northern Trust added client collateral to the categories managed by its Exposure Analysis tool, aiming to help institutional clients collect complex information at the fund or plan level.

Exposure Analysis offers institutional investors and asset managers an understanding of the effect that a single entity has on a fund or plan as soon as market events occur.

Available on Northern Trust’s Web portal, Passport, the tool provides information on collateral positions in an entity as well as market exposure to physical assets and counterparty exposure to over-the-counter derivative transactions.

“As the market has evolved and clients seek more transparency [in] their portfolios, our tools have been enhanced to allow our clients to monitor their exposure to determine how their fund or plan may be impacted,” Debra Clayton, product manager for Corporate & Institutional Services, said.

Clients worldwide can enter a security identifier or issuer name via the tool and immediately receive total client collateral positions in any one entity across asset types and accounts. Exposure Analysis shows clients their collateral positions through amount, location and status of collateral. The addition of collateral exposure to market, counterparty and securities lending positions expands clients view of portfolio exposure to help them ensure that they have effective risk management and compliance oversight programs in place.

Kristen Heinzinger