Securities Finance
Chapter One
An Introduction to Securities
Lending
Mark C. Faulkner
Managing Director
Spitalfields Advisors
Securities lending-the temporary transfer of securities on a collateralized
basis-is a major and growing activity providing significant
benefits for issuers, investors, and traders alike. These are likely to
include improved market liquidity, more efficient settlement, tighter
dealer prices and, perhaps, a reduction in the cost of capital. This chapter
describes securities lending, the motivation for lenders and borrowers
to participate, the role of intermediaries, market mechanics, and the
risks faced by the lenders of securities.
WHAT IS SECURITIES LENDING
Securities lending is an important and significant business tha ... read full excerpt from Securities Finance: Securities Lending and Repurchase Agreements ebook
