In this “Five Questions” article, BBH’s Chris Griffin talks with Co-Heads of Global Securities Lending, Marney McCabe and Tom Poppey, about the state of securities lending during the COVID-19 crisis, the likely aftermath, and how asset managers are reacting. What follows is an excerpt of their conversation.
In the past week, we have witnessed unprecedented levels of market action as investors continued to process both the short- and long-term implications of the COVID-19 pandemic. Additionally, news of an oil price war between the world’s largest producers, Saudi Arabia and Russia, sent oil prices down as much as 31 percent, weighing on markets already concerned about the current demand environment. By the end of the week, markets showed some elements of recovery, with European markets witnessing some of the largest daily price increases since 2008, as policy responses geared up around the world. [As of March 16, 2020] Continue reading “Markets Struggle to Find a Cure for Contagion as COVID-19 Concerns Continue to Rattle Investors”
The US economy, driven by a hard-charging stock market, large cash reserves, tax reform, and a relaxed regulatory environment, has fueled an uptick in deal-making in 2019 with no slowdown in sight. Merger activity for Q1 in the US came in at $537.6bn across 2,158 deals*, shattering the previous year’s mark of 518 deals in 2018. Led by Bristol-Myers Squibb’s offer to acquire Celgene for $96.8bn, and Danaher Corps acquisition of GE Biopharma for $21.4Bbn, healthcare accounted for the bulk of the deals followed by technology. The second quarter has been loaded with energy deals most prominently led by Chevron agreeing to buy Anadarko for $33bn.
The BBH team is very much looking forward to the upcoming 16th Annual PASLA/RMA Conference on Asian Securities Lending which will be held in Sydney, Australia next week.
After a recent media appearance at their studios by BBH Chief Currency Strategist Win Thin, Nasdaq published a congratulatory message about our bicentennial on their tower in Times Square, lighting up the night in BBH red. Thank you, Nasdaq, for this recognition and we hope our readers enjoy the picture.
Last week Hong Kong Exchanges & Clearing Ltd announced rule changes to allow technology firms that have shares with different voting rights to go public in Hong Kong, continuing the trend for lending opportunity growth in Hong Kong and the broader APAC region.
BBH was well represented at the 15th Annual Pan Asia Securities Lending Association (PASLA) conference, held in Hong Kong the week of March 5. Tom Poppey, BBH’s Global Head of Securities Lending Product Development and Client & Program Management served as co-chair of the conference. The theme of the event was “Embracing the Future” offering attendees unique perspectives on what to expect from both regulatory and economic influences on the securities lending market. Continue reading “Embracing the Future: A Recap of the PASLA Securities Lending Conference”
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”
Zubair Nizami, head of Asian securities lending trading at BBH, gives his views on regulatory challenges and potential opportunities in Asia ahead of the PASLA/RMA Conference in Hong Kong.