At the end of 2018, we predicted 2019 would be the year securities lending went mainstream.
“Change is coming. Securities lending is a $2.5tn secret that’s about to be opened up to every investor, from the worlds largest funds through to, eventually, even consumers.”
And now the market is catching up with our prediction:
The fund’s fee waiver…likely can be offset by these companies through securities lending.
Societe Generale SA said it’s among the banks seeking a relaxation of rules that restrict lending of shares listed in China.
Funds have failed to realise that the federal and state governments are the big lenders into this
market which should quash reputation concerns.
BinckBank sees more clients opt in for sec lending.
“The number of customers choosing to participate in the securities lending programme grew steadily in 2018,” the bank said in its annual report.
Securities lending, collateral transformation and optimal trading programs are on the agenda for sovereign wealth funds.
Looking at what will lead to a payment-for-investment model, Flowspring pointed to securities lending.
