The agency lending team has partnered with its buy-side arm to provide securities lending clients with the strategy.
The move comes as international investors look to significantly increase their access to China’s $13.9 trillion bond market.
Custodians and prime brokers have sought to unlock the use of ETFs as collateral in securities lending transactions.
The potential for lending ETF units to generate additional yield could be significant, as investors focus on driving recovery in returns after the COVID-19 crisis.
ECB decided to push back project to replace TARGET2 with a new real-time gross settlement, while also delaying the new Eurosystem Collateral Management system.
Increased margin calls and collateral disputes among the reasons why treasury teams faced a crucial role during the COVID-19 crisis and beyond.
Research from ICMA found that while demand for repo increased significantly dealers’ capacity to intermediate was constrained and limited access to many firms that needed it.
Initial margin collected by phase one firms for their non-cleared derivatives totalled $173.2 billion, an increase of 10% compared to year-end 2018.
Market volatility sparked by the COVID-19 pandemic has resulted in a significant increase in prime brokers asking for more collateral from hedge funds.
Asset managers receive respite from authorities in implementing the final phase of the uncleared margin rules as coronavirus continues to impact regulation.