Securities Lending - Response to New York Times Article (Part Two)

Yesterday I wrote part one of my response to the issues raised in the New York Times securities lending article last week. Indulge me for a moment - a brief history lesson.  In 1994 there were losses generated by cash reinvestment programs tied to securities lending – typically as a result of purchases of “inverse floaters”.  For these purposes, it doesn’t matter what inverse floaters are, just...