Copying and distributing are prohibited without permission of the publisher
Calstrs' Duran speaks about securities lending
27 September 2013
One of the world’s largest pension plans, the California Teachers’ Retirement System, puts securities lending at the heart of its investment activities, finds Andrew Sheen
Securities lending is a controversial practice to many outside the financial services industry and has attracted its fair share of regulatory attention.
In the years since the collapse of Lehman Brothers, politicians, regulators and commentators of all stripes, on both sides of the Atlantic, have lined up to take a shot at the business.
But in reality, securities lending is an important activity for vast swathes of the retirement provision and asset management industries, which benefit from much-needed liquidity and returns.
A survey of investors of North American and European fund managers conducted by research and advisory firm Finadium, found that securities lending is seen as important business activity, and one that is becoming increasingly integrated with other parts of capital markets.
Josh Galper, managing principal at Finadium, says investors are increasingly “comfortable” with securities lending. “They no longer view it as a controversial practice,” he says, adding that additional...
Access to this content is denied because you are not logged in. Please login to view this content
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.