Securities Lending Agreement

Securities Lending Agreement

An agreement governing the loan of a stock, derivative, or other security to an investor. A securities lending agreement requires the borrower to put up collateral, such as cash, security, or a letter of credit. It also states how long the loan lasts, what fee the lender receives, and the amount and type of collateral. Securities lending agreements are important to short selling, in which an investor borrows securities in order to immediately sell them.
References in periodicals archive ?
Finance director Jeff Spies has recommended the approval of a resolution to terminate the city's securities lending agreement with Wachovia Global Securities.
A standard-form securities lending agreement treats the bankruptcy filing by the borrower as a default.
The Company also entered into a Forbearance Agreement with Citigroup whereby Citigroup and the Company acknowledged that if March 16, 2009, were the maturity date of the securities loans outstanding under a Global Master Securities Lending Agreement between the Company and Citigroup (the "Global Agreement"), the Company would be obligated to return to Citigroup cash collateral of $1.
Included in the terminations were AIG's securities lending transactions with FRBNY under the securities lending agreement announced in October, which totaled approximately $20.
8 Billion Securities Lending Agreement arranged with the Federal Reserve Bank of New York.
AIG) announced today that certain of its domestic life insurance subsidiaries have entered into a securities lending agreement with the Federal Reserve Bank of New York.
Under the Securities Lending Agreement, the New York Fed will borrow, on an overnight basis, investment grade fixed income securities from these AIG subsidiaries in return for cash collateral.
Also discussed are the implications of the treatment of repurchase and securities lending agreements.
As of September 30, 2008, ACE has entered into securities lending agreements approximating $2 billion.
These counterparties have agreed to both a contractual reduction of margin requirements for financing the company's mortgage securities and a suspension of their rights to invoke further margin calls and related rights under their reverse repurchase agreements, global master securities lending agreements and auction swap agreements subject to certain covenants and conditions discussed in the company's March 19, 2008, press release announcing the agreement.
8 billion of reverse repurchase agreement financing whereby these counterparties have agreed to both a contractual reduction of margin requirements for financing the company's mortgage securities and a suspension of their rights to invoke further margin calls and related rights under their reverse repurchase agreements, global master securities lending agreements and auction swap agreements with the company subject to certain covenants and conditions discussed below.
Her work is principally focused on representation of hedge fund, broker-dealer and bank clients with respect to the development and negotiation of specialized financing arrangements, derivatives and other financial products, including prime brokerage and securities lending agreements, various option, swap, repurchase and forward arrangements, and a wide variety of equity, credit and hedge fund-linked structures.

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