Ever more corporate working capital is tied up in margin, and the cost for banks of uncollateralised trading is becoming ever more transparent.
Risk.Net reports today that Goldman client margin soared $4.5bn last October, and that Morgan Stanley provided $468m funding cost against uncollateralised receivables on derivatives. With the movement on currencies and commodities prices in the meanwhile margin calls will only have gone one way.
The business case for corporates improving control over margin, minimising the quantity and optimising the type of collateral delivered (cheapest vs. easiest) is ever stronger.
There is plenty that can be done, perhaps the cash crunch that will result from falling commodity prices will be the final straw to persuade CFOs to ask for improvements?
See here for the Risk.Net articles.