ABN AMRO To Partner EIB In Derivatives Outsourcing Deal

The European Investment Bank (EIB) is to outsource its derivatives collateral management activities to ABN AMRO while ABN AMRO Mellon has been appointed to act as global custodian on all the collateral bonds. ABN AMRO will act as the EIB’s collateral agent and take on responsibility for marking collateral to market, margin calls, returns and substitutions, as well as related settlement services. Valuation of derivatives transactions will remain in-house in order to preserve confidentiality for the EIB’s counterparties. ABN AMRO’s ability to combine collateral management services with global custody, whilst providing full outsourcing of the activities related to the maintenance of a large collateral portfolio necessary for derivatives trading, was a key factor in the EIB’s decision. Commenting on the decision, Ms. Anneli Peshkoff, Director of EIB’s Treasury Department said: ‘The outsourcing of the collateral management is important for improving the management of the counterparty risk of the Bank’s substantial derivatives portfolio. The decision to outsource is based on an analysis of the incremental resources required internally versus the cost and flexibility of outsourcing.’


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