The market continues to evolve, and participants need to stay current on developments in order to optimize their programs for both risk and return. The main changes to eSecLending’s third edition include:
- Non-cash collateral is becoming more prevalent for US-domiciled lenders as some borrowers prefer to offer non-cash for balance sheet reasons
- Globally, term transactions are becoming more prevalent, again because of benefits to borrower balance sheets
- For agent lenders providing indemnification, costs are rising based on Dodd-Frank and Basel III requirements, leading to potentially revised pricing for lenders and/or changes to program trading patterns
- There is growing interest in peer-to-peer transactions and new trading platforms
- It is more important than ever for lenders to continue to evaluate their securities lending programs and establish whether or not changes should be made based on the evolving landscape