A reasonably good article from the FT on ETFs and securities lending

Ed: Still some of the same old tropes about the evils of lending but otherwise well reported.

ETF securities lending almost doubles in four years

Securities lending by exchange traded funds has almost doubled since 2017, data from EquiLend show, reflecting the huge growth in assets under management in the ETF industry as a whole.

The value of ETFs’ on-loan balances — the value of securities on loan at any point in time — rose 77 per cent, from an average of $37.5bn in 2017 to $66bn between January 1 and mid-May, according to EquiLend, a securities lending platform. This dwarfed an overall increase of 21 per cent in the wider securities lending market.

“As the ETF market has grown, so their securities lending might have grown,” said Nancy Allen, global head of DataLend, the market data division of EquiLend.

The full article is available at https://www.ft.com/content/866171e2-1916-4c55-bdc2-2d6c6cb56609

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