Market sees slump in lending fees

The supply/demand balance in stock lending has meant some life companies are becoming disinterested in making their stock available as lending is not as lucrative as it once was.

Colin Black, director of insured business at the UK arm of Aegon, said life groups are not receiving the fees they once did as hedge funds move towards a net long position after two years of favouring shorts.

HFR talked to another life company, which did not wish to be named, noting that even though it was a small player