ETFs offering tasty sec lending returns
12 July 2016 Luxembourg
Image: Shutterstock
European and Asian exchange-traded funds (ETFs) are currently offering particularly attractive lending returns in their equity securities lending rates, according to Clearstream chair Jeffrey Tessler.
Demand for ETFs is steadily growing but challenges around settlement and realignment within the fragmented European market are stifling further potential for growth, according to Tessler.
The ETF market is worth more than €450 billion, with more than 2,200 products registered in at least 20 countries, according to Clearstream.
Clearstream provides ETF issuers with global access to investors in over 50 markets as well as settlement in over 40 currencies, which can be utilised for securities lending and collateral management through its Global Liquidity Hub.
“Currently, ETFs enjoy the highest equity securities lending rates, with European and Asian ETFs offering particularly attractive lending returns,” Tessler said.
Meanwhile, Clearstream’s global securities finance service has seen a 16 percent fall in its volume outstanding so far this year compared to the same period in 2015.
June’s €520.77 billion in volume outstanding was also disappointing, as it represented a drop from June 2015’s €609.28 billion.
Demand for ETFs is steadily growing but challenges around settlement and realignment within the fragmented European market are stifling further potential for growth, according to Tessler.
The ETF market is worth more than €450 billion, with more than 2,200 products registered in at least 20 countries, according to Clearstream.
Clearstream provides ETF issuers with global access to investors in over 50 markets as well as settlement in over 40 currencies, which can be utilised for securities lending and collateral management through its Global Liquidity Hub.
“Currently, ETFs enjoy the highest equity securities lending rates, with European and Asian ETFs offering particularly attractive lending returns,” Tessler said.
Meanwhile, Clearstream’s global securities finance service has seen a 16 percent fall in its volume outstanding so far this year compared to the same period in 2015.
June’s €520.77 billion in volume outstanding was also disappointing, as it represented a drop from June 2015’s €609.28 billion.
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