BNY Mellon tool to help buy-side analyse liquidity risk

BNY Mellon has launched a liquidity aggregator to enable clients to gain a deeper view of their exposure and risk.

BNY Mellon has launched a liquidity aggregator to enable clients to gain a deeper view of their exposure and risk.

The liquidity aggregator is available via the firm’s Liquidity Direct portal and will allow users to analyse and quantify their portfolio return and liquidity risk, features BNY Mellon said are vital as markets expand globally.

"Nearly all financial transactions and commitments have liquidity implications," said Jonathan Spirgel, head of GCS sales and relationship management at BNY Mellon. "To be highly effective, liquidity risk management requires insights, tools, products and services that support a client's ability to both maximise liquidity and analyse investment exposure."

Available across US and non-US domiciled funds, the liquidity aggregator will enable active monitoring of investments to help control liquidity risk exposures and manage funding needs.

It takes security type, country and region of exposure, weighted average yields and maturities into account.

The tool’s dashboard enables firms to view their exposure across all funds with positions, money market mutual fund holdings, the largest holdings within a portfolio and shared securities. Users can also access trends and reporting for month-end and six-month intervals of money market mutual fund daily yields.

The tools form part of BNY Mellon’s Collateral Universe, designed for buy-side clients to help them manage the impact of marketplace and regulatory change on their investment process.

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