COLLATERAL MANAGEMENT is the process of two parties exchanging assets in order to reduce credit risk associated with any unsecured financial transactions between them. Such counterparties include banks, broker-dealers, insurance companies, hedge funds, pension funds, ASSET MANAGERS and large corporations.
Guarantee MANAGEMENT is the procedure of two gatherings trading resources so as to diminish acknowledge hazard related for any unbound budgetary exchanges between them. Such counterparties incorporate banks, agent sellers, insurance agencies, speculative stock investments, annuity reserves, ASSET MANAGERS and enormous enterprises. In exchanges including oversaw (exchanged) resources, ASSET MANAGERS are liable for gathering and observing the fundamental security and, when legally anticipated, supplanting resources dependent on pre-characterized choice criteria.