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Quantitative Finance · Glossário

O que é Unencumbered cash, liquidity buffer?

Também chamado de: unencumbered cash · liquidity buffer

Definition 14.1 The Desk and the Firm · Capítulo 14 — Treasury and Funding

Unencumbered cash is cash, and assets convertible to cash the same day, that the firm holds free of any pledge, margin requirement or restriction and can use at once. A liquidity buffer is the part of it held against stressed outflows (margin calls, collateral returns, redemptions, loss of financing) over a defined horizon, and not used to fund positions.

A trading firm’s treasury: the accounts that hold its collateral and call or release margin daily, and the sources it can turn into cash the same day. Each arrow has its own terms, cut-off times and notice periods. Schematic.
Figure 14.1. A trading firm’s treasury: the accounts that hold its collateral and call or release margin daily, and the sources it can turn into cash the same day. Each arrow has its own terms, cut-off times and notice periods. Schematic.
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