Small investors can do sec lending too, says Ireland
13 June 2014 Grand Cayman
Image: Shutterstock
Smaller entities can access the securities lending market for their funding needs, according to Ned Ireland, vice president and lead underwriter at Cayman Islands-based private advisory firm Cal & Schwartz Capital.
"We looked at the market and were just so disappointed with what was out there. Sure, a market exists for securities lending and it’s huge, but it’s really only for institutional traders,” said Ireland.
Ireland believes that Cal & Schwartz is positioned to capture market capitalisation that does not exist for smaller markets.
"Securities lending is written as this impossibly complex trading mechanism that doesn't work for smaller companies and that couldn't be further from the truth.”
“We have found that in fact our product is superior and allows smaller companies the ability to raise capital in a environment much less stringent and quicker than transitional avenues."
Cal & Schwartz has provided smaller companies with collateral, including letters of credit and bonds, so that they can participate in securities lending since 2010.
The firm “can only work with sophisticated investors”, said Ireland, adding: “We do have screening programmes put into place.”
"We looked at the market and were just so disappointed with what was out there. Sure, a market exists for securities lending and it’s huge, but it’s really only for institutional traders,” said Ireland.
Ireland believes that Cal & Schwartz is positioned to capture market capitalisation that does not exist for smaller markets.
"Securities lending is written as this impossibly complex trading mechanism that doesn't work for smaller companies and that couldn't be further from the truth.”
“We have found that in fact our product is superior and allows smaller companies the ability to raise capital in a environment much less stringent and quicker than transitional avenues."
Cal & Schwartz has provided smaller companies with collateral, including letters of credit and bonds, so that they can participate in securities lending since 2010.
The firm “can only work with sophisticated investors”, said Ireland, adding: “We do have screening programmes put into place.”
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