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European lending roundtable
07 June 2012
Despite regulatory complexity, and some negative perception around short selling, supply has come back
into the market and beneficial owners are increasingly looking at programmes in a favourable light, participants at the European lending roundtable heard
Chair: What’s important in the European market right now?
Stuart Catt: Wider collateral because we’re running out of good quality G7 debt and more people are talking about equity as an option. Collateral upgrade trades are also coming more into our conversations – will upgrade trades come to pass in any great amount or value? Will beneficial owners be comfortable with the risk they take doing upgrade trades?
Jeannine Lehman: Collateral transformation will become a big opportunity for lending. Securities lending has a mechanism for traditionally considered around securities lending, and are increasingly focused on country risk and local counterparty risk or downgrades.
Andy Dyson: David’s point on regulation is spot on. A lot of large beneficial owners are very concerned about regulation. They feel to an extent that they’re being left on their own, a little bit stuck in the headlights, ‘what do we do with all this?’...
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