Finadium has released the results of a new survey on traditional asset managers in custody, securities lending and collateral management. This report covers the opinions, attitudes and program direction of mutual fund and separate account managers, and uncovers new thinking particularly in counterparty and credit risk.
Highlights of the report include:
• Custodians are coming to be seen not only as service providers but also counterparties with their own risk.
• By assets under management, 6.2% of funds in our survey have left securities lending for the time being. An additional 22% have reduced their lending activity.
• 71% of funds review counterparty risk on at least a cursory basis. 19% of funds have additional risk management process including adding securities lending and collateral credit exposure to other investments.
• Asset managers recommend that their peers clearly establish their reasons for lending. The answer sets expectations for risks and revenue levels going forward.
For more details, please visit www.finadium.com
D.C.