eSecLending, the Bermuda-based securities lending manager controlled by CalPERS in partnership with UK insurer Old Mutual, announced today that it had recently completed a securities lending auction of approximately $15 billion in passive international equities owned by CalPERS.
Exclusive borrowing rights to the securities were auctioned using eSecLending’s web-based platform, eSecAuction. Six major financial institutions submitted winning bids in the October 9, 2002 auction to include Barclays Capital, Bear, Stearns Securities Corp., Credit Suisse First Boston, Deutsche Bank Securities Inc. and Lehman Brothers Inc.
“Since our founding in 2000, eSecLending has helped its clients lend equities and fixed income securities totaling over $165 billion,” says Susan Peters, Chief Executive Officer of eSecLending. “Our auction process and administrative services have successfully endured rigorous tests and audits over the past year, and moving forward our strategy remains focused on the continued development of program services for clients and business expansion in both North America and Europe.”
“The recent auction of our passively managed international equities was a success,” adds Curtis Ishii, Senior Investment Officer for CalPERS Global Fixed Income program. “We saw new borrowers participating in this fall’s auction, and eSecLending continues to meet and exceed our goals through increased operational efficiencies and a comprehensive pre-auction strategy and analysis, that make for a very smooth auction process. CalPERS and its members are retaining a significantly larger share of the revenues associated with the lending process by using eSecLending, while we continue to move further out on the efficient risk-return frontier.”
eSecLending will host additional securities lending auctions for CalPERS’ US and international equities in December.