JP Morgan spin off Cygnifi has completed a collateral best-practices consultation project for the New York branch of HypoVereinsbank.
Cygnifi worked with HVB to create a tailored policy governing all collateralised business undertaken by the branch, including swaps, derivatives, repo, total return swaps, and GICs. Cygnifi interviewed more than 25 members of the bank's team in New York and Munich to gain an understanding of HVB's business practices and objectives. Cygnifi has since been retained by the bank to create a dedicated collateral management team.
Marshall Terry, director, HVB, New York, who has been named to head the team comments: "Cygnifi's collateral business expertise is unique in the market, spanning market risk, credit risk and collateral management. We are quite pleased with the services provided by Cygnifi and are seeking additional ways in which we can leverage their capabilities."
Cygnifi was established by JP Morgan to rent derivatives risk management tools to traders on an application service provider basis and supply professional advisory services to institutions.