securities loan


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Securities loan

The loan of securities between brokers, often to cover a client's short sale; or a loan secured by marketable securities.

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).

securities loan

1. A loan made to an investor for the purpose of buying securities. The loan is secured by the securities.
2. The lending of securities by one broker-dealer to another broker-dealer. Securities loans generally occur when broker-dealers need to borrow securities for delivery on customers' short sales.
References in periodicals archive ?
Hantz has spent the past seven years in the commercial mortgage-backed securities loan closing group on structuring and closing CMBS loans for multi-borrower securitizations and large loans for single borrower securitizations.
1 million commercial mortgage-backed securities loan by Prudential Mortgage Capital Company secured by a condominium property in Jacksonville, Fla.
TALF -- the Term Asset-Backed Securities Loan Facility -- was set up by the U.
8 billion in earnings on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions
To get these markets working again, the Board introduced the Term Asset-Backed Securities Loan Facility (TALF) on November 25, 2008.
Belstar has also raised more than $280 million in two funds to take part in the Term Asset-Backed Securities Loan Facility administered by the U.
For instance, the Fed on June 30 closed the Term Asset-Backed Securities Loan Facility for loans against newly issued commercial mortgage- backed securities.
amp;nbsp; The only facilities, aside from the regular discount window, that are still open are the Term Auction Facility (TAF) and Term Asset-Backed Securities Loan Facility (TALF).
The bond is scheduled to be priced later this week and is not eligible for funding under the Federal Reserve's Term Asset-Backed Securities Loan Facility, or TALF.
In June 2009, responding to the growing credit crisis, the Federal Reserve officially launched the Term Asset-Backed Securities Loan Facility (TALF) to include commercial mortgage-backed securities (CMBS).
While some programs, such as the Term Asset-backed Securities Loan Facility (TALF), are fully operational, others including the Home Affordable Modification Program (HAMP) and the Public-Private Investment Program (PPIP), are still new and face ongoing implementation and operational challenges.
The Federal Reserve has announced that it will extend the Term Asset-Backed Securities Loan Facility (TALF) program through March 31, 2010, for "legacy" (existing) commercial mortgage-backed securities (CMBS); and through June 30, 2010, for newly issued investment-grade CMBS.

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