Asset managers look to sec lending for revenue and liquidity
07 August 2013 Concord
Image: Shutterstock
A 鈥渉ealthy majority鈥� of large asset managers have embraced their securities lending programmes to generate both revenue and liquidity, but challenges remain, according to Finadium鈥檚 2013 survey.
The Massachusetts-based research firm spoke to asset managers for its 2013 securities lending and collateral management survey, and released the results on 6 August.
Large asset managers embracing their securities lending programmes to generate both revenue and liquidity are in the majority, 鈥渂ut challenges remain鈥�, said Finadium in a release.
US firms assessing cash collateral reinvestment options in the face of changing regulations and a zero interest rate environment 鈥渕ay no longer be as easy as mandating an overnight repo only policy as this repo supply becomes more constrained鈥�.
In Europe, UCITS providers are 鈥渨orking to comply with European 麻豆传媒 and Markets Authority regulations on maintaining a fee split that is fair and reasonable while also assessing new cash and non-cash collateral options鈥�.
It added: 鈥淒ividend arbitrage is expected to decline, but asset growth and entries into new markets and types of securities financing activities are expected to propel securities lending into its next phase of business evolution.鈥�
is available now.
The Massachusetts-based research firm spoke to asset managers for its 2013 securities lending and collateral management survey, and released the results on 6 August.
Large asset managers embracing their securities lending programmes to generate both revenue and liquidity are in the majority, 鈥渂ut challenges remain鈥�, said Finadium in a release.
US firms assessing cash collateral reinvestment options in the face of changing regulations and a zero interest rate environment 鈥渕ay no longer be as easy as mandating an overnight repo only policy as this repo supply becomes more constrained鈥�.
In Europe, UCITS providers are 鈥渨orking to comply with European 麻豆传媒 and Markets Authority regulations on maintaining a fee split that is fair and reasonable while also assessing new cash and non-cash collateral options鈥�.
It added: 鈥淒ividend arbitrage is expected to decline, but asset growth and entries into new markets and types of securities financing activities are expected to propel securities lending into its next phase of business evolution.鈥�
is available now.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
