RMA conference on securities lending: demanding times
11 October 2012 Miami
Image: Shutterstock
Hedge funds have switched their equity trading programmes to 鈥渄efensive mode鈥� as far as capital is concerned, while beneficial owners are demanding more information and transparency from their agent lenders.
The Risk Management Association's (RMA's) 29th Annual Conference on 麻豆传媒 Lending featured a panel on global demand trends in equity trading.
Frederick Nadd-Aubert of Credit Suisse, Peter Abric of Wells Fargo 麻豆传媒, James Gerspach of J.P. Morgan, Carey Chamberlain of HSBC and Mark Payson of Brown Brothers Harriman analysed key trends from the past few years.
Nadd-Aubert said that hedge funds are going into 鈥渄efensive mode鈥� as far as capital is concerned, while the rest of the panel identified other trends.
One trend that Chamberlain has observed is that credit diversification has become a big focus.
He has also seen US money managers change the way that they operate.
He said: 鈥淎 lot of US money managers have pulled money out of Europe and are possibly putting it back into their home market, which is fair enough.鈥�
Another trend is that beneficial owners are 鈥渕ore demanding about being informed about opportunities and emerging markets,鈥� according to Gerspach.
Chamberlain added: 鈥淭here's been a shift in how trading desks, lenders and hedge funds look at stock lending.鈥�
Clients want research-based products as their emphases on transparency and information have increased, according to Chamberlain. Gerspach agreed, adding: 鈥淭hat demand has certainly taken off and multiplied in the last few years.鈥�
The main change that Payson has identified is how clients view his firm. The firm now acts 鈥渁s an advisor鈥�, providing information and transparency on a regular basis and before trading is initiated.
The Risk Management Association's (RMA's) 29th Annual Conference on 麻豆传媒 Lending featured a panel on global demand trends in equity trading.
Frederick Nadd-Aubert of Credit Suisse, Peter Abric of Wells Fargo 麻豆传媒, James Gerspach of J.P. Morgan, Carey Chamberlain of HSBC and Mark Payson of Brown Brothers Harriman analysed key trends from the past few years.
Nadd-Aubert said that hedge funds are going into 鈥渄efensive mode鈥� as far as capital is concerned, while the rest of the panel identified other trends.
One trend that Chamberlain has observed is that credit diversification has become a big focus.
He has also seen US money managers change the way that they operate.
He said: 鈥淎 lot of US money managers have pulled money out of Europe and are possibly putting it back into their home market, which is fair enough.鈥�
Another trend is that beneficial owners are 鈥渕ore demanding about being informed about opportunities and emerging markets,鈥� according to Gerspach.
Chamberlain added: 鈥淭here's been a shift in how trading desks, lenders and hedge funds look at stock lending.鈥�
Clients want research-based products as their emphases on transparency and information have increased, according to Chamberlain. Gerspach agreed, adding: 鈥淭hat demand has certainly taken off and multiplied in the last few years.鈥�
The main change that Payson has identified is how clients view his firm. The firm now acts 鈥渁s an advisor鈥�, providing information and transparency on a regular basis and before trading is initiated.
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