All Securities Services articles – Page 67
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Features
Loans built into bond pricing
Competitive pressures can only increase the onus on pension fund managers to maximise returns, consistent with the security that trustees and pensioners require.One of the most important of these techniques is to access the repo or bond lending value inherent in portfolios. Bond lending can be a discretionary activity performed ...
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New rules prompt Spezialfonds boom
Interest in Germany’s Spezialfonds is booming. Insurance companies and pension funds in the country almost doubled their investment in this type of fund last year, thanks in part to an obscurely worded change in investment regulations.In 1995 insurers invested DM15.8bn ($xxbn) of assets in Spezialfonds -a type of investment fund ...
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Finding the right counterpart
The Register of International Securities Financing Counterparts is a central database, held and managed by Securities Finance International, containing profiles of many of the world’s major securities lending custodians, agents, intermediaries and proprietary borrowers. Selecting the right counterparts is a critical part of the securities lending process. Use of the ...
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LBSS extends custody services
Leading Swedish bank Nordbanken AB has appointed Lloyds Bank Securities Services (LBSS) to provide sub-custody services for its UK portfolio values at £110m ($175m). The portfolio was previously handled by Barclays Securities Services, but the arrangements were reviewed when Barclays was taken over by Morgan Stanley.LBSS has also been appointed ...
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German strategies report
Consultants Buck Heissmann is nearing completion of one of the first comprehensive studies of Germany’s company pension strategies, which could lead to a re-assessment of the amount of pension assets under management. The study, commissioned by Goldman Sachs Asset Management, has the stated objective of identifying and cataloguing ‘Best practices’ ...
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The key to profitable lending
The key to making money from securities lending ultimately lies in the stocks you hold. Typically a UK pension fund will hold a majority of its assets in UK equities where supply can at times be greater than demand. Equities held in lesser developed countries with illiquid markets typically command ...
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Managing the risks
To combat the risks of a loan return not being made or being delayed, the borrower will be re-quired to deliver collateral to the lender, usually with a market value which exceeds the loaned securities by a margin, typically between 5% and 15%. The margin allows for any variation in ...
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Views from other side of the table
Pension funds are losing their traditional ambivalence about securities lending, according to ‘borrowing’ institutions.Securities lending is becoming a mainstream activity,” says Roy Zimmerhansl, director of equity finance at Nomura in London. “There is a lot less fear and loathing than 10 years ago and more people are talking about it ...
