Most Active Articles 2009-11-25T15:26:38.836-05:00 Business Exchange Business_Exchange@businessweek.com urn:com:businessweek:bx:topic:most-active:securities-lending Gerard Denham gdenham662 urn:com:businessweek:bx:article:16768194602627234038-70d8049f8a824a639ee28340ff40da28 2009-11-25T05:00:34.975-05:00

NEW YORK and CHICAGO, Nov. 24, 2009 (GLOBE NEWSWIRE) -- Quadriserv, Inc. today announced the expansion of the universe of securities eligible for clearance through The Options Clearing Corporation (OCC) stock loan programs, including AQS(R).

NEW YORK and CHICAGO, Nov. 24, 2009 (GLOBE NEWSWIRE) -- Quadriserv, Inc. today announced the expansion of the universe of securities eligible for clearance through The Options Clearing Corporation (OCC) stock loan programs, including AQS(R). http://finance.yahoo.com/news/Quadriserv-Inc-and-The-pz-2307201381.html?x=0&.v=1 Gerard Denham gdenham662 0 0 0 0 urn:com:businessweek:bx:article:8178380584556411514-58642fd3eb44cb02d99022956af25689 2009-11-23T03:49:52.029-05:00

There’s been a lengthy discussion on other blogs this week about how ETF Securities’ new currency ETCs work. In my view, the blogs’ authors, Felix Salmon of Reuters and Izabella Kaminska of FT Alphaville, have missed one key subject – collateral...

There’s been a lengthy discussion on other blogs this week about how ETF Securities’ new currency ETCs work. In my view, the blogs’ authors, Felix Salmon of Reuters and Izabella Kaminska of FT Alphaville, have missed one key subject – collateral... http://www.indexuniverse.com/blog/6899-remembering-collateral-costs.html Gerard Denham gdenham662 2 2 0 0 urn:com:businessweek:bx:article:2712401811740687112-9c1a4d2b42163f2917d79532232c5478 2009-11-21T09:06:50.000-05:00

I’ve mentioned before the dramatic leveling of the playing field in prime brokerage.  New entrants, new alliances and product combinations are all having an impact or may do so in the coming months.  Looking at the same issue from a different angle we can see increasing influence from a geographic perspective.  Canadian banks seem to have weathered the financial market turmoil better than banks in most countries.  Comments on these banks inevitably include positive endorsements on balance sheet, capital strength and counterparty strength.  I like to think that RBC and CIBC were both put into stronger positions as a result of my combined 7 years working for them in the 1980's.The news last week that Bank of Montreal (BMO) had purchased Paloma Securities is just the latest example of the increasing footprint of the Canadian banks in the securities finance business.  This past year saw the six Canadian banks’ prime brokerage businesses all receive an increasing number of responses in the Global Custodian Prime Brokerage Survey.   Some are newer entrants to prime brokerage or at the smaller end (think National Bank and CIBC) whereas RBC, Scotia and TD have been part of the business for a longer period of time. BMO’s purchase will undoubtedly help improve some of their weaker scores in the securities lending space and aid their effort in growing the PB business.CIBC Mellon and RBC Dexia are both long established global custodian banks, although both represent evolutionary developments from predecessor businesses.  A few months ago, Scotiabank dove into the Wachovia organisation and scooped up six senior executives to help it create an agency lending product.  In the repo space, TD has been a new entrant into the space in New York this year, filling an obvious gap in their product range.Compare the Canadian experience with the latest corporate news from Australia in the securities space.  Yesterday ANZ announced the sale of its custody business to JP Morgan.  This follows a horrific period in ANZ’s recent corporate history with their experience in securities lending with the Opes Prime debacle.  They obviously decided it was best to cut its exposure to securities services and focus instead on its recent purchase of ING’s Australian wealth management and insurance business.  Australia remains one of the less hospitable places for short selling and securities lending.  One of the key requirements placed on traders is that short sales must be disclosed when the order is placed and the exchange releases daily statistics on short sales.  I always wonder what this type of information is meant to convey.  I maintain that information without context is meaningless.  Lets look at the Aussie data by clicking here for an example.  This report is from trading on November 19th and shows 313 stocks where some short selling was reported. The report is a text file rather than a spreadsheet, so I have manually tabulated some figures and I admit there may be a certain degree of error which is mine alone.  Of the 313 stocks, 59 of them reported short sales of 20% or more of total turnover. Thirteen of the stocks had short sale turnover in excess of 40%.  Of the 13 stocks where short sales were over 40%, 3 of the stocks had price increases on the day, one was essentially flat, 8 stocks fell between 0 and 2% on the day, and only one moved more than 2%, with a dramatic 6.89% drop.  Cumulative short sale positions are also shown, and despite this high daily activity which is pretty consistent, the largest aggregated position represented only 0.37% of issued share capital.  Effectively this is a negligible.  So what do the numbers tell us?  Truth is, I don’t really know.  Is the short selling volume primarily intraday trading that is covered by the end of day?  Are the trading volumes low in my sample, thus showing short sale activity as disproportionately large?  Are the stocks and the report from the day not representative of the market as a whole?  I don’t really know the answers and I think it is likely that there are a large number of investors in Australian stocks that would also struggle to respond to those questions.  Rules meant to protect investors that can’t actually be used by them represent unnecessary regulatory interference. 

I’ve mentioned before the dramatic leveling of the playing field in prime brokerage.  New entrants, new alliances and product combinations are all having an impact or may do so in the coming months.  Looking at the same issue from a different angle we can see increasing influence from a geographic perspective.  Canadian banks seem to have weathered the financial market turmoil better than banks in most countries.  Comments on these banks inevitably include positive endorsements on balance sheet, capital strength and counterparty strength.  I like to think that RBC and CIBC were both put into stronger positions as a result of my combined 7 years working for them in the 1980's.The news last week that Bank of Montreal (BMO) had purchased Paloma Securities is just the latest example of the increasing footprint of the Canadian banks in the securities finance business.  This past year saw the six Canadian banks’ prime brokerage businesses all receive an increasing number of responses in the Global Custodian Prime Brokerage Survey.   Some are newer entrants to prime brokerage or at the smaller end (think National Bank and CIBC) whereas RBC, Scotia and TD have been part of the business for a longer period of time. BMO’s purchase will undoubtedly help improve some of their weaker scores in the securities lending space and aid their effort in growing the PB business.CIBC Mellon and RBC Dexia are both long established global custodian banks, although both represent evolutionary developments from predecessor businesses.  A few months ago, Scotiabank dove into the Wachovia organisation and scooped up six senior executives to help it create an agency lending product.  In the repo space, TD has been a new entrant into the space in New York this year, filling an obvious gap in their product range.Compare the Canadian experience with the latest corporate news from Australia in the securities space.  Yesterday ANZ announced the sale of its custody business to JP Morgan.  This follows a horrific period in ANZ’s recent corporate history with their experience in securities lending with the Opes Prime debacle.  They obviously decided it was best to cut its exposure to securities services and focus instead on its recent purchase of ING’s Australian wealth management and insurance business.  Australia remains one of the less hospitable places for short selling and securities lending.  One of the key requirements placed on traders is that short sales must be disclosed when the order is placed and the exchange releases daily statistics on short sales.  I always wonder what this type of information is meant to convey.  I maintain that information without context is meaningless.  Lets look at the Aussie data by clicking here for an example.  This report is from trading on November 19th and shows 313 stocks where some short selling was reported. The report is a text file rather than a spreadsheet, so I have manually tabulated some figures and I admit there may be a certain degree of error which is mine alone.  Of the 313 stocks, 59 of them reported short sales of 20% or more of total turnover. Thirteen of the stocks had short sale turnover in excess of 40%.  Of the 13 stocks where short sales were over 40%, 3 of the stocks had price increases on the day, one was essentially flat, 8 stocks fell between 0 and 2% on the day, and only one moved more than 2%, with a dramatic 6.89% drop.  Cumulative short sale positions are also shown, and despite this high daily activity which is pretty consistent, the largest aggregated position represented only 0.37% of issued share capital.  Effectively this is a negligible.  So what do the numbers tell us?  Truth is, I don’t really know.  Is the short selling volume primarily intraday trading that is covered by the end of day?  Are the trading volumes low in my sample, thus showing short sale activity as disproportionately large?  Are the stocks and the report from the day not representative of the market as a whole?  I don’t really know the answers and I think it is likely that there are a large number of investors in Australian stocks that would also struggle to respond to those questions.  Rules meant to protect investors that can’t actually be used by them represent unnecessary regulatory interference.  http://www.stocklendingtoday.com/my_weblog/2009/11/ive-mentioned-before-the-dramatic-levelling-of-the-playing-field-in-prime-brokerage-new-entrants-new-alliances-and-produ.html 3 2 1 0 urn:com:businessweek:bx:article:13630451908573591478-b85d87668cab039833d3740e66f0f166 2009-11-18T03:55:48.566-05:00

As many as 90% of U.S. pension funds could suffer losses. In the wake of the announcement from California's state pension fund (CALpers) that it recently lost approximately $700 million in its...

As many as 90% of U.S. pension funds could suffer losses. In the wake of the announcement from California's state pension fund (CALpers) that it recently lost approximately $700 million in its... http://www.reuters.com/article/pressRelease/idUS142797+03-Nov-2009+PRN20091103 Gerard Denham gdenham662 9 9 0 0 urn:com:businessweek:bx:article:8332033148800797428-a7bc714494ea2af5048f8069ceec6e5a 2009-11-17T11:01:48.176-05:00

Nov. 16 (Bloomberg) -- BMO Capital Markets, the investment- banking business of Bank of Montreal, hired a team and bought assets from Paloma Securities LLC to expand its securities- lending business. Bank of Montreal added 42 people from the lending...

Nov. 16 (Bloomberg) -- BMO Capital Markets, the investment- banking business of Bank of Montreal, hired a team and bought assets from Paloma Securities LLC to expand its securities- lending business. Bank of Montreal added 42 people from the lending... http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axMsMIgLeDY8 Gerard Denham gdenham662 5 5 0 0 urn:com:businessweek:bx:article:14378195934141186617-cbff46c5903c491296254b5a19ee3af6 2009-11-16T22:53:00.000-05:00

documents) -- Prime Brokerage Agreements (Give-Up Agreements) -- Master Repurchase Agreements -- Master Securities Forward Transaction Agreements -- Securities Lending Agreements -- Tri-Party Agreements -- Rate Cap Agreements 'Drawn-out contract

documents) -- Prime Brokerage Agreements (Give-Up Agreements) -- Master Repurchase Agreements -- Master Securities Forward Transaction Agreements -- Securities Lending Agreements -- Tri-Party Agreements -- Rate Cap Agreements 'Drawn-out contract http://c.moreover.com/click/here.pl?r2340109725&f=9791 3 2 1 0 urn:com:businessweek:bx:article:234316602031838939-b8d6d7c171cce84a2e04cd97b9dd2667 2009-11-02T19:00:28.901-05:00

ICON Commercial Lending is a trusted authority for non-recourse stock loans. Go to www.iconcl.com ICON has a proven track record in providing world-class customer service to their clients. ICON is a Full-Service Securities Lender offering 100% Non-Recourse / Non-Purpose Loans, based upon stocks & other securities to obtain loans for personal or business purposes. ICON is located in Salt Lake City, Utah. We are supported by a national network of loan professionals and other financial, legal, and research support personnel. Securities Lending is a long-established process. Collectively ICON has funded hundreds of successful stock-lending transactions which have been executed involving the American Stock Exchange (AMEX), National Stock Market and Small Cap Stock Market (NASDAQ), New York Stock Exchange (NYSE), Over-the-Counter Bulletin Board (OTCBB), and certain foreign exchanges. For those with money invested in marketable securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago. Stock loans can be used to purchase RE or any other use – these are non-purpose / non-recourse loans. For example, CEOs, CFOs or COOs, with large publically traded companies, who have large blocks of Corporate can leverage those assets to take advantage of investment opportunities. This lending program is designed for a forward-thinking investor who wants to retain the future ownership of their assets as well as leverage the present value of their securities for immediate cash needs. These loans are – Simple & Quick – NO Credit Check / NO Income Verification NO Upfront Fees / NO Closing Costs / NO Personal Guarantee Loans are “Non-Purpose” – loan can be used for virtually anything borrower wants to accomplish (personal or business) Loans are “Non-Recourse” – giving the borrower the opportunity to simply “walk away” if the collateral falls below a set floor amount High Loan-to-Values – up to 80% LTV (depending upon security); which is much higher than banks and brokerage companies can offer Loans are Interest Only – principal payment at maturity; otherwise loans can be refinanced or extended Low Fixed Interest Rates – usually between 2% to 4% Loan Term – minimum of 3 yrs; also 5 yr / 7 yr / 10 yrs Quick Funded – usually within 5 to 7 business days

ICON Commercial Lending is a trusted authority for non-recourse stock loans. Go to www.iconcl.com ICON has a proven track record in providing world-class customer service to their clients. ICON is a Full-Service Securities Lender offering 100% Non-Recourse / Non-Purpose Loans, based upon stocks & other securities to obtain loans for personal or business purposes. ICON is located in Salt Lake City, Utah. We are supported by a national network of loan professionals and other financial, legal, and research support personnel. Securities Lending is a long-established process. Collectively ICON has funded hundreds of successful stock-lending transactions which have been executed involving the American Stock Exchange (AMEX), National Stock Market and Small Cap Stock Market (NASDAQ), New York Stock Exchange (NYSE), Over-the-Counter Bulletin Board (OTCBB), and certain foreign exchanges. For those with money invested in marketable securities, there is a golden opportunity to cash-in on the tremendous RE investment opportunities now available. Today, there are multiple commercial & residential RE properties available for about 30% to 50% of what they were only two years ago. Stock loans can be used to purchase RE or any other use – these are non-purpose / non-recourse loans. For example, CEOs, CFOs or COOs, with large publically traded companies, who have large blocks of Corporate can leverage those assets to take advantage of investment opportunities. This lending program is designed for a forward-thinking investor who wants to retain the future ownership of their assets as well as leverage the present value of their securities for immediate cash needs. These loans are – Simple & Quick – NO Credit Check / NO Income Verification NO Upfront Fees / NO Closing Costs / NO Personal Guarantee Loans are “Non-Purpose” – loan can be used for virtually anything borrower wants to accomplish (personal or business) Loans are “Non-Recourse” – giving the borrower the opportunity to simply “walk away” if the collateral falls below a set floor amount High Loan-to-Values – up to 80% LTV (depending upon security); which is much higher than banks and brokerage companies can offer Loans are Interest Only – principal payment at maturity; otherwise loans can be refinanced or extended Low Fixed Interest Rates – usually between 2% to 4% Loan Term – minimum of 3 yrs; also 5 yr / 7 yr / 10 yrs Quick Funded – usually within 5 to 7 business days http://www.iconcl.com Randall Farr rfarr473 8 7 1 0 urn:com:businessweek:bx:article:6567645348928060138-3d66b099197d6915e542a3ac708bee59 2009-10-04T17:52:38.000-04:00

There are no doubt several aspects to learning about securities lending. Two of the key issues are Training and Discussion/Debate. Taken together, the market will move forward for the benefit of all... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

There are no doubt several aspects to learning about securities lending. Two of the key issues are Training and Discussion/Debate. Taken together, the market will move forward for the benefit of all... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] http://feedproxy.google.com/~r/Sltn/~3/1RIeoy3npLk/i-am-in-the-final-stages-of-preparing-for-the-gsltv-conference-in-amsterdam-on-thursday-this-should-be-a-fascinating-event.html 11 10 1 0 urn:com:businessweek:bx:article:6160280007766754867-fc1084cb3ef0bfa3d98595ac8de4638c 2009-10-08T13:35:00.000-04:00

A more transparent securities-lending industry is emerging, thanks to new indexes that benchmark the sector.

A more transparent securities-lending industry is emerging, thanks to new indexes that benchmark the sector. http://www.indexuniverse.com/sections/features/6696-new-indexes-add-some-clarity-to-securities-lending.html 5 4 1 0 urn:com:businessweek:bx:article:15927923509142527333-a21e95a130fd0158ae5e5cf822630542 2009-10-05T23:22:00.000-04:00

source of data, analysis and insight into short-selling and securities financing, today announced the expansion of their independent securities lending research and consultancy services to North America. Mark Faulkner, founder of Data Explorers, who

source of data, analysis and insight into short-selling and securities financing, today announced the expansion of their independent securities lending research and consultancy services to North America. Mark Faulkner, founder of Data Explorers, who http://c.moreover.com/click/here.pl?r2247657718&f=9791 6 5 1 0 urn:com:businessweek:bx:article:14081826838527696764-0ea7bb692a22b7eb3a2c9eb3c8ef1859 2009-10-08T00:15:00.000-04:00

clearing and settlement services to 13 exchanges and platforms for options, financial and commodity futures, security futures and securities lending transactions. As the CCP clearinghouse for the markets it serves, OCC assumes the counterparty risk of

clearing and settlement services to 13 exchanges and platforms for options, financial and commodity futures, security futures and securities lending transactions. As the CCP clearinghouse for the markets it serves, OCC assumes the counterparty risk of http://c.moreover.com/click/here.pl?r2252928659&f=9791 5 4 1 0 urn:com:businessweek:bx:article:10544096699663043187-608150f6dcc7d11bdbfed1d1a415121b 2009-10-05T11:45:00.000-04:00

Quadriserv Welcomes New Members To Its Securities Lending Platform...

Quadriserv Welcomes New Members To Its Securities Lending Platform... http://home.globalcustodian.com/newsshow.do?newsid=35658 6 5 1 0 urn:com:businessweek:bx:article:8340488941176786660-64d8c2ac83dc9fc172913ed7699c935d 2009-04-16T10:39:33.723-04:00

The cost to borrow large-cap stocks has risen significantly over the last year, at times exceeding that of small-cap names, which are traditionally more expensive, says consultancy Finadium.

The cost to borrow large-cap stocks has risen significantly over the last year, at times exceeding that of small-cap names, which are traditionally more expensive, says consultancy Finadium. http://www.securitiesindustry.com/news/-23366-1.html Gerard Denham gdenham662 30 28 1 1 urn:com:businessweek:bx:article:12021719473467457394-ba8da03b6fa40c990621987d4b4b52f2 2009-04-05T21:25:00.000-04:00

into problems, investment banks went bust, and short sellers making use of borrowed stock were vilified. In fact, securities lending turned out to be riskier than many lenders had appreciated, from both a business and a reputational point of view.

into problems, investment banks went bust, and short sellers making use of borrowed stock were vilified. In fact, securities lending turned out to be riskier than many lenders had appreciated, from both a business and a reputational point of view. http://c.moreover.com/click/here.pl?r1907043031&f=9791 33 31 1 1 urn:com:businessweek:bx:article:14311207640134612125-6d637a6f575b21cfee6fc9557fec708e 2009-09-29T06:55:00.000-04:00

to enhance investor-oriented oversight.' The SEC is holding a public round table Tuesday to explore several issues around securities lending, which has expanded into a big moneymaker for Wall Street firms and pension funds. Regulation hasn't kept pace,

to enhance investor-oriented oversight.' The SEC is holding a public round table Tuesday to explore several issues around securities lending, which has expanded into a big moneymaker for Wall Street firms and pension funds. Regulation hasn't kept pace, http://c.moreover.com/click/here.pl?r2233254750&f=9791 6 5 1 0 urn:com:businessweek:bx:article:6976527071488584410-5d641b90f02ff5674e65805f67e70c4e 2009-10-01T09:24:00.000-04:00

...day forum on “short-selling and securities lending.” ... nobody wants to hear the bad news that is the short-sellers’ stock in trade.

...day forum on “short-selling and securities lending.” ... nobody wants to hear the bad news that is the short-sellers’ stock in trade. http://pfblogs.org/entry/1483473 4 3 1 0 urn:com:businessweek:bx:article:9570116416153537938-f273b1bbaad9f551f15492b54f97080a 2009-08-29T02:11:00.000-04:00

capacity within three years, Wright said. Prime brokers provide hedge funds and other clients with services such as stock lending and trade clearing. Hedge funds are increasing their use of multiple prime brokers after the demise of Bear Stearns and

capacity within three years, Wright said. Prime brokers provide hedge funds and other clients with services such as stock lending and trade clearing. Hedge funds are increasing their use of multiple prime brokers after the demise of Bear Stearns and http://c.moreover.com/click/here.pl?r2173138320&f=9791 14 13 1 0 urn:com:businessweek:bx:article:2519199410353685123-4a62da32f45dd9f4b698c4f05b7bc4d2 2009-04-01T09:13:00.000-04:00

Losses on securities lending have happened before - in 1994 when interest rates went up fast and 2002 when Enron and Worldcom went bust.

Losses on securities lending have happened before - in 1994 when interest rates went up fast and 2002 when Enron and Worldcom went bust. http://www.nakedcapitalism.com/2009/03/guest-post-exxon-pension-fund-sues.html?showComment=1238605980000 26 25 1 0 urn:com:businessweek:bx:article:3161262840108849708-e39ad62dec7f31222b25ce527efc3b43 2009-09-30T21:09:00.000-04:00

can have on our markets,' Schapiro said on the second day of a two-day public meeting to explore securities lending and short selling. Under pressure from Congress, the SEC has proposed various rules to restrict short selling, a legitimate investment

can have on our markets,' Schapiro said on the second day of a two-day public meeting to explore securities lending and short selling. Under pressure from Congress, the SEC has proposed various rules to restrict short selling, a legitimate investment http://c.moreover.com/click/here.pl?r2236986741&f=9791 2 1 1 0 urn:com:businessweek:bx:article:14781170661470701966-d32ef02b85b8a8650f69228c80b6591b 2009-09-30T08:33:00.000-04:00

Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority, said at a regulatory round table on stock lending that the 'retailization' of securities lending, in which brokers are turning to individual margin accounts for stocks,

Ketchum, chairman and chief executive of the Financial Industry Regulatory Authority, said at a regulatory round table on stock lending that the 'retailization' of securities lending, in which brokers are turning to individual margin accounts for stocks, http://c.moreover.com/click/here.pl?r2234678242&f=9791 2 1 1 0 urn:com:businessweek:bx:article:14395874674556631842-81089678105877dea85f628e4dbe0dd1 2009-08-04T03:15:47.187-04:00

Securities servicing providers and custody banks have reported that most, if not all, of their securities lending clients have removed the self-imposed ban ...

Securities servicing providers and custody banks have reported that most, if not all, of their securities lending clients have removed the self-imposed ban ... http://www.efinancialnews.com/assetmanagement/index/content/1054850978/ Gerard Denham gdenham662 3 2 0 1 urn:com:businessweek:bx:article:15264525997724804812-1024cf8eb16c6cb1d3fa6898a232a1ad 2009-03-27T09:49:27.962-04:00

ISLA has today published Securities Lending: your questions answered to give beneficial owners of securities a balanced overview of securities lending. The booklet addresses concerns that owners may have about risks and short selling. It highlights the potential revenue from securities lending as well as its wider importance to market liquidity and efficiency.

ISLA has today published Securities Lending: your questions answered to give beneficial owners of securities a balanced overview of securities lending. The booklet addresses concerns that owners may have about risks and short selling. It highlights the potential revenue from securities lending as well as its wider importance to market liquidity and efficiency. http://www.isla.co.uk/member.aspx?id=1978 Gerard Denham gdenham662 19 17 1 1 urn:com:businessweek:bx:article:5198034564529996830-3e0748294c4ca5cc2590e9b9276e23e0 2009-05-13T16:18:07.034-04:00

According to research firm Aite Group as the financial services industry has retrenched, the securities lending market has faced diminished liquidity, less demand due to deleveraging, and a shrinking pool of hedge funds.

According to research firm Aite Group as the financial services industry has retrenched, the securities lending market has faced diminished liquidity, less demand due to deleveraging, and a shrinking pool of hedge funds. http://www.securitiesindustry.com/news/-23446-1.html?ET=securitiesindustry:e1572:174588a:&st=email Gerard Denham gdenham662 13 11 1 1 urn:com:businessweek:bx:article:15151395409143379150-3866a95b640ee2978bca01b80fa7e4b4 2009-03-03T07:34:52.116-05:00

A decade ago the securities lending business was more of a profitable hobby than a super-sized, critical component of the capital markets. The dramatic rise of hedge funds in recent years, combined with investment banks' growing appetite for proprietary trading, helped drive stock lending to the heady heights reached at its peak last year. The figures are staggering: Securities on loan have at times surged past the $3 trillion level, according to estimates. Securities lending is sold to investors as a low-risk addition to their traditional investment activity. Be clear about the words "low risk" as opposed to "no risk." Last year made it clear to all market participants that there are tangible exposures in this business--a realization that was a shock to some.

A decade ago the securities lending business was more of a profitable hobby than a super-sized, critical component of the capital markets. The dramatic rise of hedge funds in recent years, combined with investment banks' growing appetite for proprietary trading, helped drive stock lending to the heady heights reached at its peak last year. The figures are staggering: Securities on loan have at times surged past the $3 trillion level, according to estimates. Securities lending is sold to investors as a low-risk addition to their traditional investment activity. Be clear about the words "low risk" as opposed to "no risk." Last year made it clear to all market participants that there are tangible exposures in this business--a realization that was a shock to some. http://www.securitiesindustry.com/issues/19_89/23242-1.html Gerard Denham gdenham662 23 22 1 0 urn:com:businessweek:bx:article:2998421021007438443-2b56d9ddeaab512325d3f5fac3b1f72c 2008-12-02T20:47:00.000-05:00

Short-selling relies on securities lending. And securities lending relies on the willingness of institutional investors to temporarily part...

Short-selling relies on securities lending. And securities lending relies on the willingness of institutional investors to temporarily part... http://allaboutalpha.com/blog/2008/12/02/securities-lending-starting-to-dry-up-a-little/ 38 37 1 0