Asset managers look to sec lending for revenue and liquidity
07 August 2013 Concord
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A “healthy majority” of large asset managers have embraced their securities lending programmes to generate both revenue and liquidity, but challenges remain, according to Finadium’s 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, “but challenges remain”, said Finadium in a release.
US firms assessing cash collateral reinvestment options in the face of changing regulations and a zero interest rate environment “may no longer be as easy as mandating an overnight repo only policy as this repo supply becomes more constrained”.
In Europe, UCITS providers are “working to comply with European Securities and Markets Authority regulations on maintaining a fee split that is fair and reasonable while also assessing new cash and non-cash collateral options”.
It added: “Dividend 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.”
Leading Asset Managers on Securities Lending and Collateral Management in 2013: A Finadium Survey 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, “but challenges remain”, said Finadium in a release.
US firms assessing cash collateral reinvestment options in the face of changing regulations and a zero interest rate environment “may no longer be as easy as mandating an overnight repo only policy as this repo supply becomes more constrained”.
In Europe, UCITS providers are “working to comply with European Securities and Markets Authority regulations on maintaining a fee split that is fair and reasonable while also assessing new cash and non-cash collateral options”.
It added: “Dividend 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.”
Leading Asset Managers on Securities Lending and Collateral Management in 2013: A Finadium Survey is available now.
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