Report finds hidden reservoir of lendable securities
| Mar 21st, 2010 | Filed under: Hedge Fund Operations and Risk Management, Today's Post | By: AAA Staff |
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One thing the still-ongoing Lehman UK debacle has definitively accomplished has been to force the entire alternatives industry to re-think how it looks at securities lending, in particular how best to orchestrate it safely, securely and cost-efficiently.
Clearly that has been the case post-2008, with asset managers, custodian banks, third party lenders and others re-entering the lucrative game of “sec” lending, albeit in a much more cautious and conservative way. Last year, we wrote about the changing landscape of the sec lending model, particularly among prime brokers.
At the same time, new and untapped sources of sec lending have begun to emerge, and an increasing number of hedge funds and other borrowers are starting to recognize something: So-called “fully paid” retail brokerage assets, which according to a recent report published by Finadium, amount to some $8.6 trillion in assets. More…
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