UK - State Street Corporation has announced it will now provide Paternoster with collateral management services.
State Street already provides custody and securities lending for Paternoster. It said its collateral management service was designed to help manage, track and provide reports on collateralised transactions, allowing users more time to devote to achieving investment returns.
It comes as a response to increasing demand from institutional investors who use derivatives in their portfolios.
Paternoster’s chief executive Mark Wood said: “Collateral management is particularly important given our complex liability-driven investment style.”
State Street’s head of asset owner group in the UK, Alasdair Reid, said: “Following recent market volatility, we expect more and more closed defined benefit schemes to transfer their liabilities to the bulk annuity market.”
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