Different Type of Crisis, Some Old Concerns

Over the past two months we have witnessed historic turmoil followed by unprecedented intervention by policy makers and central banks in supporting the capital markets (and more). In many ways the 2020 COVID-19 pandemic is very different from the 2008 global financial crisis, but for some, certain old concerns still linger. In the face of short selling bans and worries about market liquidity, we discuss below how best to navigate some of the common objections and concerns related to securities lending and how to position your securities lending program in the current environment and beyond.

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Five Questions on Securities Lending

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. 

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Markets Struggle to Find a Cure for Contagion as COVID-19 Concerns Continue to Rattle Investors

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”

Key Drivers Impacting Securities Lending – Join us at the IMN Europe Conference!

Securities lending has never been more relevant than it is today. We are arguably entering one of the most exciting periods for the industry where challenges and opportunities are in equal measure. Where there have been binding constraints or emerging opportunities, the impetus to drive innovation and bring greater diversity of thought to the industry has become essential. As such, client engagement has never been higher with market participants reviewing their models and methods to meet this strong opportunity.  Continue reading “Key Drivers Impacting Securities Lending – Join us at the IMN Europe Conference!”

The Impact of CSDR on Securities Lending

In comparison to the US, European corporations tap the capital markets to a much lesser extent, preferring to borrow directly from banks. Settlement inefficiency across the EU is seen as one reason for this and the comprehensive set of measures contained in ESMA’s Central Securities Depository Regulation (CSDR) is an attempt to address this. Continue reading “The Impact of CSDR on Securities Lending”

The Standout Asian Market for Securities Lending

As the second largest securities lending market in APAC, Hong Kong has been the success story in recent times and industry experts are seeing continued growth for clients there. Zubair Nizami, Head of Asian Securities Lending Trading at BBH recently discussed his market observations with Securities Lending Times.

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From the Securities Lending Trading Desk – Week of May 20th

In the Americas, Uber Technologies (UBER) saw its shares fall 7.6% in their highly anticipated initial public offering. In Asia Pacific, the plight of one of Japan’s leading phone display manufacturers continued to worsen. In Europe, Osram Licht AG (OSR GY) shares buck trend after a possible Bain-Carlyle offer.

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Four Takeaways From the 2019 Finadium Investors in Securities Lending Conference

BBH was pleased to sponsor the Finadium Investors Securities Lending conference on May 2- 3 in New York City, and represented the industry on several panels.  The forum was well attended by Asset Managers, Beneficial Owners, Agent Lenders, Prime Brokers, Hedge Funds, as well as a variety of industry vendors, and provided comprehensive insights on the market trends influencing our industry.  Continue reading “Four Takeaways From the 2019 Finadium Investors in Securities Lending Conference”

From the Securities Lending Trading Desk – Week of May 13th

In the Americas, lending fees have skyrocketed for coal mining company, Cloud Peak Energy. In Asia Pacific, there’s an increase in demand for Softbank Corp following an announcement that it will become the largest shareholder of Yahoo Japan. In Europe, demand continues for Purplebricks as one of its founding partners exits the company.

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