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Who are the lenders? And why are they lending?

Who are the lenders? And why are they lending?

Principally, every owner of stocks, bonds and ETFs has the right to lend them. However, for decades the practise has been largely confined to big financial institutions who have made billions of dollars from renting out their securities. Many active and passive fund managers, such as mutual funds and ETFs, engage in securities lending to help boost a fund’s performance or to offset the costs of managing a portfolio.

Securities lending is a great source of alpha as it opens up a new stream of revenue on assets you already own, irrespective of their price movement. Given the opaqueness of this industry, many investors are unaware of the hidden value of their portfolio.

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Sharegain - Unlock the hidden value of your portfolio

With securities lending, as with other investment activities, your capital may be at risk.

Sharegain Ltd. is registered in England and Wales (no. 09600298) and is authorised and regulated by the Financial Conduct Authority (no. 730395).
*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
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