Hey big lender

Securities lending has become big business in line with the growth in the hedge fund industry. The activity is, however, subject to numerous risks, leading to the emergence of several technology solutions aimed at helping firms manage their exposures. Clive Davidson reports

Lending securities from its £6 billion portfolio of assets earns West Yorkshire Pension Fund in the UK around £1 million a year. It is a useful way of increasing the earnings of the portfolio for relatively little effort. It is also part of a global activity where an estimated $3 trillion worth of securities are on loan at any given time - a business that is growing as those holding assets, such as pension funds and insurance companies, look for ways to increase their returns outside of low