Finadium Releases Research On Institutional Investors On Securities Lending, Collateral Management And Leveraged

Finadium has released a new survey of institutional investors on securities lending, collateral management and leveraged investing. This report is driven by interviews with 34 institutional investors and data collection from 85 US public pension plans. Highlights of the report

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Finadium has released a new survey of institutional investors on securities lending, collateral management and leveraged investing. This report is driven by interviews with 34 institutional investors and data collection from 85 US public pension plans. Highlights of the report are:

– A trend toward unbundling securities lending from collateral management.

– A 17% reduction in the number of institutions participating in lending programs, but only a 9.5% loss as measured by assets.

– An interest in risk mitigation in both securities lending and collateral management, including a new willingness to look at central credit counterparties for elimination of bilateral credit risk.

– A large change in priorities from our last year’s report focusing on routes to market for securities loans. This year’s comments reflected heavily on a new conservatism especially in collateral management.

D.C.

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