Northern Trust Corporation NTRS has launched an upgraded active collateral solution designed to help institutional investors manage their collateral more efficiently while addressing ever-changing market conditions.

The solution was developed in conjunction with CloudMargin, a leading global collateral management technology provider, which will improve service capabilities, and increase real-time transparency and platform resiliency. 

The solution includes an automatic asset selection using configurable hierarchies, support for sophisticated eligibility requirements, real-time data access via client portals, report-writing capabilities, and complete end-to-end automation.

These advanced capabilities are part of Northern Trust's full suite of collateral, derivatives and liquidity management solutions. Clients can use these services globally, either as individual components to supplement their existing in-house procedures or as part of a larger suite of collateral management solutions.

NTRS & CloudMargin’s Management Remarks

Nadia Ivanova, head of business services at Northern Trust Asset Servicing, said, “Our clients must be strategic and nimble in managing their investment portfolios, including collateral management, to optimize asset deployment and minimize performance drag. Our advanced, digitized solutions can help clients achieve this objective – minimizing the value of assets that need to be tied up as collateral and managing counterparty exposure effectively. This showcases our technology vision in action, delivering the agility, resilience, automation, and long-term value our clients require.”

Ivanova added, “Our clients must be strategic and nimble in managing their investment portfolios, including collateral management, to optimize asset deployment and minimize performance drag. Our advanced, digitized solutions can help clients achieve this objective – minimizing the value of assets that need to be tied up as collateral and managing counterparty exposure effectively. This showcases our technology vision in action, delivering the agility, resilience, automation, and long-term value our clients require.”

CloudMargin CEO Stuart Connolly said, “CloudMargin’s purpose-built collateral platform is continuously updated, enhanced and maintained. Northern Trust clients will benefit from full automation in their collateral workflow, and unprecedented levels of transparency. We are incredibly honoured that Northern Trust selected CloudMargin for this mission-critical service after a comprehensive review of the marketplace and rigorous due diligence process. The collaboration is another important milestone in our continued growth trajectory in our 10th anniversary year.”

NTRS Zacks Rank & Price Performance

Year to date, shares of NTRS have risen 32.6% compared with the industry’s 36.1% growth.

Image Source: Zacks Investment Research

Currently, Northern Trust carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Collaborations Pursued by Other Finance Firms

Earlier this month, State Street Corp.’s STT asset management arm, State Street Global Advisors, joined forces with Bridgewater Associates LP to boost its core alternative investment strategies. The partnership aligns with State Street’s growth strategy to strengthen its fee income. 

Similarly, AllianceBernstein L.P. AB entered a partnership with Reinsurance Group of America, Incorporated RGA to expand its insurance business.

AB has been selected as one of the leading investors in Ruby Reinsurance Company — a reinsurance sidecar vehicle sponsored by RGA which focuses on the U.S. asset-intensive market. AB plans to manage private alternative assets for RGA’s general account through this transaction.

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