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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here