PAIF launches securities lending
26 June 2018 Hong Kong
Image: Shutterstock
Asian bond fund (ABF) Pan Asia Bond Index (PAIF) has launched a securities lending program, effective 10 July.
From this date, certain Asian local-currency-denominated bonds held by PAIF will be available to qualify borrowers in the securities lending markets.
PAIF primarily invests in local currency government and quasi-government bonds in Asia.
Additionally, PAIF is the first fund among the Executives' Meeting of East-Asia and Pacific Central Banks’ (EMEAP) ABF series to launch a securities lending program.
State Street Global Advisors commented that it is an important milestone for the ABF initiative to further develop the Asian bond markets. HSBC is the lending agent of the securities lending program.
June Wong, senior managing director and head of Asia ex-Japan at State Street Global Advisors, commented: “The fund is expected to generate income from the securities lending program, which can offset some of the associated costs of the fund and potentially enhance its returns.”
“At the same time, we believe the addition of Asian local-currency denominated bonds into the lending pool will deepen liquidity in the secondary markets, ultimately benefiting all investors”, Wong continued.
“Since the launch of PAIF in 2005, State Street Global Advisors has been working closely with EMEAP to develop the Asian local currency bond markets as well as to promote the asset class among investors in the region. We are very pleased to see the remarkable growth of the markets over the past years.”
Wong added: “Many major investors participate in securities lending and we are proud to be part of this significant market development and contribute to the development of local currency bond markets in the region.”
“We are also very excited about the markets’ future growth as we see Asian local currency bonds becoming an increasingly important asset class for investors both in the region and globally.”
Roy Zimmerhansl, global head of securities lending at HSBC securities services, said: “The launch of PAIF into the securities lending market is an important milestone in the growth of secondary market demand for Asian local-currency government bonds.”
He added: “The assets available from the fund will broaden and deepen the liquidity pools in underlying assets contributing to a better market for all investors while contributing revenue to the fund. HSBC is honoured to be involved in this landmark development.”
From this date, certain Asian local-currency-denominated bonds held by PAIF will be available to qualify borrowers in the securities lending markets.
PAIF primarily invests in local currency government and quasi-government bonds in Asia.
Additionally, PAIF is the first fund among the Executives' Meeting of East-Asia and Pacific Central Banks’ (EMEAP) ABF series to launch a securities lending program.
State Street Global Advisors commented that it is an important milestone for the ABF initiative to further develop the Asian bond markets. HSBC is the lending agent of the securities lending program.
June Wong, senior managing director and head of Asia ex-Japan at State Street Global Advisors, commented: “The fund is expected to generate income from the securities lending program, which can offset some of the associated costs of the fund and potentially enhance its returns.”
“At the same time, we believe the addition of Asian local-currency denominated bonds into the lending pool will deepen liquidity in the secondary markets, ultimately benefiting all investors”, Wong continued.
“Since the launch of PAIF in 2005, State Street Global Advisors has been working closely with EMEAP to develop the Asian local currency bond markets as well as to promote the asset class among investors in the region. We are very pleased to see the remarkable growth of the markets over the past years.”
Wong added: “Many major investors participate in securities lending and we are proud to be part of this significant market development and contribute to the development of local currency bond markets in the region.”
“We are also very excited about the markets’ future growth as we see Asian local currency bonds becoming an increasingly important asset class for investors both in the region and globally.”
Roy Zimmerhansl, global head of securities lending at HSBC securities services, said: “The launch of PAIF into the securities lending market is an important milestone in the growth of secondary market demand for Asian local-currency government bonds.”
He added: “The assets available from the fund will broaden and deepen the liquidity pools in underlying assets contributing to a better market for all investors while contributing revenue to the fund. HSBC is honoured to be involved in this landmark development.”
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