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Chris Kunkle, RMA, interview
19 September 2013
Ahead of the Annual Conference on Securities Lending in Florida, the RMA’s Chris Kunkle tells Stephanie Baxter why amid the challenging regulatory backdrop it’s not all doom and gloom
US securities lending
Global markets are watching the US Federal Reserve (Fed) like hawks, as the time grows closer to when it takes its foot off the quantitative easing (QE) pedal.
The prospect of rising interest rates is causing concern among equity and bond investors but Chris Kunkle, director of securities lending and market risk at the Risk Management Association (RMA), believes that beneficial owners will at least stand to profit from their programmes to help mitigate the pain.
“It will allow securities lenders to make a little more spread for their clients each time rates go up. And, you can earn a little more money from re-investment. As we’re now lending more intrinsically – rather than value-oriented – the extra payoff would be you get a little more spread on reinvestment.”
But the Fed has yet to reveal when it will begin tapering bond purchases, let alone start raising interest rates. Raising interest...
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