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Isla: Trading desk trends discussed
22 June 2012
Securities lending clients are increasingly attracted to intrinsic value lending, a panel of experts discussed at this week's Isla conference
intrinsic value lending
There is a move to intrinsic value lending, debate continues over the pricing of specials and dynamically delta hedging positions is the future of securities lending, delegates heard at the annual International Securities Lending Association (Isla) conference in Madrid.Nick Davis, manager of the equity lending desk Emea, JPMorgan said he is seeing clients move into intrinsic value lending because the collateral profile draws them into that space. He said a lot of benchmarking is taking place and the business is more transparent than it has been in the past. “It’s about on certain trades educating clients who do want to re-rate to the best level on the street by explaining to them why it’s at that level, looking at duration etcetera. Some clients we have do like the flow business that’s going through but they also want to reduce potential fails in the marketplace, so if they can see less...
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