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 ?
The company's financing solutions include Convertible debt, Securities loans, Medium Term Loans, Bridge Loans and PIPEs to name a few.
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.
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.
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.
Securities loans may not be as important to hedge funds today as they were in 2008, however, it is expected that securities lending will return to center stage over the next several years.
Banks make far larger volumes of real estate loans and auto loans than securities loans.
2 billion, and over 196,000 private securities loans, home equity/home equity lines of credit loans, private, and member bank loans totaling $23.

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