Hedge Funds, Volatility, and the Securities Lending Market

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The trading desk has received a number of queries over recent weeks asking if we have seen a material uptick in lending activity as a result of the increased volatility in the equity markets. The short answer – it’s too early to say. In this post, Robert Lees, Global Head of Securities Lending Trading, offers his perspective on the dynamics at play. Continue reading “Hedge Funds, Volatility, and the Securities Lending Market”

Outlook: May You Live in Interesting Times

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As we begin the year, our attention turns to the themes which will likely drive securities lending demand over the coming months. In so many ways, 2016 was a fascinating year in terms of global macroeconomic and political events that both shaped the markets and created significant opportunities for our clients and their securities lending programs.

Our thought is that 2017 will be no different. In this update we provide some insights into the key macroeconomic events that will influence securities lending programs and predict what sectors may be in focus. Common themes across all regions will likely include the impact of rising interest rates in the US, a potential increase in dispersions in the equity markets and the lingering influence of political events on the global markets. Whatever happens, we expect unprecedented levels of uncertainty, which we believe will be an important driver for new trade ideas and new securities lending opportunities.

Continue reading “Outlook: May You Live in Interesting Times”

Regulators acknowledge the importance of securities lending to market liquidity

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Two things caught my attention recently and although from very different places, they have a common theme – Liquidity.

Continue reading “Regulators acknowledge the importance of securities lending to market liquidity”

Bloomberg: Hedge Fund Woes Can’t Diminish Banner Year for Long-Short Trades

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A recent Bloomberg article highlighted the strength in long-short fund performance, which can be used as a barometer for the demand to borrow securities.  We made some key predictions at the beginning of 2015 which are supported in this article.   Continue reading “Bloomberg: Hedge Fund Woes Can’t Diminish Banner Year for Long-Short Trades”