Collateral Risk Management at the Bank of England

10 Pages Posted: 14 Jun 2010

Date Written: June 14, 2010

Abstract

In response to the financial crisis the Bank of England has expanded the range of collateral accepted in its market operations to include private sector assets, notably asset-backed securities and covered bonds. Such assets have different risk characteristics to the forms of collateral previously accepted, presenting new risk management challenges. This article sets out how the Bank of England undertakes collateral risk management, highlighting in particular the significant degree of protection taken by the Bank in its operations.

Suggested Citation

Breeden, Sarah and Whisker, Richard, Collateral Risk Management at the Bank of England (June 14, 2010). Bank of England Quarterly Bulletin 2010 Q2, Available at SSRN: https://ssrn.com/abstract=1624890

Sarah Breeden

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Richard Whisker (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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