State Street expands Direct Access Lending
12 October 2021 US
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State Street has announced the expansion of its peer-to-peer securities finance product, Direct Access Lending.
The product, which first launched in Q4 2019, enables direct, principal loans between its lending clients and its borrowing clients, and will now allow borrowers to post US convertible bonds as collateral to facilitate new clients and strategies entering the programme.
State Street will leverage both its Agency Lending and Enhanced Custody programmes, each already accepting US convertible bonds as collateral, to offer both sets of customers the benefits of each programme required to operate in a peer-to-peer transaction.
The same operational support provided for equity-for-equity loans in Direct Access Lending will also be offered to customers engaged in equity-for-convertible bond loans.
Martin Tell, global head of Securities Finance at State Street, says: “Providing our clients a peer option within their Enhanced Custody programme ensures stability as a trusted financing counterparty. The feedback from our customers has been very strong with the rollout of Direct Access Lending, and we’re seeking to build upon the success we’ve had with this expansion.”
“We expect significant uptake from both existing and prospective clients and are excited to continue building product capabilities into our best in class peer-to-peer program,” adds John McGuire, State Street’s global head of business development for Securities Finance.
The product, which first launched in Q4 2019, enables direct, principal loans between its lending clients and its borrowing clients, and will now allow borrowers to post US convertible bonds as collateral to facilitate new clients and strategies entering the programme.
State Street will leverage both its Agency Lending and Enhanced Custody programmes, each already accepting US convertible bonds as collateral, to offer both sets of customers the benefits of each programme required to operate in a peer-to-peer transaction.
The same operational support provided for equity-for-equity loans in Direct Access Lending will also be offered to customers engaged in equity-for-convertible bond loans.
Martin Tell, global head of Securities Finance at State Street, says: “Providing our clients a peer option within their Enhanced Custody programme ensures stability as a trusted financing counterparty. The feedback from our customers has been very strong with the rollout of Direct Access Lending, and we’re seeking to build upon the success we’ve had with this expansion.”
“We expect significant uptake from both existing and prospective clients and are excited to continue building product capabilities into our best in class peer-to-peer program,” adds John McGuire, State Street’s global head of business development for Securities Finance.
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