Collateral managed via Clearstream’s Global Securities Financing (GSF) services have broken the 400 billion mark for the first time in May illustrating the growing importance of secured financing and the continued flight of collateral towards central liquidity pools.
In May 2008, monthly average outstandings within Clearstream’s Collateral Management System peaked at a record high of 415 billion. The combined services, which include tri party repo, securities lending and collateral management collectively experienced a rise of 29% compared to May 2007. For the first five months of 2008, the combined GSF outstanding raised 18% compared to a raise of 10% in the first five months of 2007.
“This trend continues unabated and reflects the fact that our new products and services are being well received by the market. It also confirms that we have made the correct decisions to extend our award-winning collateral management services and introduce new liquidity channels for our clients,” says Stefan Lepp, member of the executive board, Clearstream Banking Frankfurt and head of Global Securities Financing.