Surviving the Liquidity Crisis with Enterprise Data Management (EDM)

Written by: Neil Edelstein, Senior Director, Product Development, GoldenSource Corporation.

Throughout the boom in complex leveraged and collateralized debt instruments, high yields have all but blinded investors to the significant risk. Now that the market has turned sour, and lenders are calling in the debts, investors are learning the hard way exactly how CDOs and other exotic instruments unravel. The market will survive this crisis, but not without a few major casualties.

To avoid becoming another Herstatt or Barings, institutions need a comprehensive understanding of all the debt they hold, and of all the related information on customers, counterparties, issuers and collateral. With a clear view of both their exposure to risk and the collateral they can offset against that risk, institutions can weather the storm and prove their viability to the market.

This 6-page document provides a strategy for surviving the current crisis by harnessing the benefits of Enterprise Data Management.