Securities Lending

The securities lending markets are finally coming to terms with the fact that it will never be a glad, confident morning again.

Pressure on securities lending increases at UK government Select Committe hearing

Agent lenders have taken in recent years to describing securities lending as an investment management discipline. This has numerous advantages. For agent lenders, it distances their trade from its origins in settlement inefficiency and tax arbitrage. A cynic familiar with how investment management works might say it also signals to the asset owners lending portfolios that scale is more important than profitability, loss of asset value is only to be expected, and intermediaries need ample rewards for the risks they run on behalf of their clients and the complex and demanding work they undertake to identify opportunities.