Securities Lending

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Securities Lending

The act of loaning a stock, derivative, or other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security, or a letter of credit. The completion of this transaction requires a securities lending agreement, which states, among other things, how long the loan lasts, what fee the lender receives, and the amount and type of collateral. Securities lending is important to short selling, in which an investor borrows securities in order to immediately sell them. The advantage of securities lending to the borrower is the fact that he/she may profit from shorting the securities; the advantage to the lender is the fee (and, if the borrower fails to repay, the collateral).
References in periodicals archive ?
based LNR Partners began foreclosure proceedings in June 2016 on the 23-acre Oheka property, claiming that Melius had defaulted on two commercial mortgage-backed securities loans totaling more than $29.
AHIP funded the purchase price with cash on hand and with the proceeds from four new commercial mortgage backed securities loans worth $236.
Commercial mortgage-backed securities loans ticked down slightly in response to rising Treasury yields, but secondary market loan trades were mixed depending on performance level," said Will Mercer, managing director with DebtX.
In his new role based in San Francisco, Brunton will originate commercial mortgage-backed securities loans on behalf of the company's recently announced joint venture with certain affiliated funds of Perella Weinberg Partners' Asset Based Value strategy, Liberty Island Group, which is focused on providing conduit loans to borrowers.
Nationwide, the rate of commercial mortgage-backed securities loans that are 30 or more days delinquent climbed to 9.
31, 2010 (CENS) -- Following the steps of government-linked Taiwanese banks, foreign banks in Taiwan recently started to extend assets-collateralized securities loans to small- and medium-sized enterprises (SMEs) here and are planning to venture into commercial property loan market in 2011.
1058(a) for certain securities loans terminated due to the bankruptcy of the securities borrower, provided the lender applies the collateral to the purchase of identical securities within 30 days of the default.
De Montfort estimated that unreported loans account for up to an additional pounds 20bn, and that the boom in commercial mortgage-backed securities loans ( where banks sell off loan books to investors ( added a further pounds 20bn to the overall lending total.
To be sure, in some cases LTCM achieved substantial leverage through use of OTC derivatives, but in other cases it relied on exchange-traded derivatives, securities loans, and securities repurchase agreements.
Brunton will originate commercial mortgage-backed securities loans on behalf of the company's recently announced joint venture with affiliated funds of Perella Weinberg Partners' Asset Based Value strategy, Liberty Island Group, which is focused on providing conduit loans to borrowers.
Morningstar Credit Ratings has predicted elevated default risk among 42 commercial mortgage-backed securities loans with an allocated property balance of $729.
The percentage of commercial mortgage-backed securities loans paying off on their balloon date reached the highest level in nearly four years in September, reported Trepp LLC, New York.

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