Securities Lending - Collateral management

Hedge funds are large speculators in the equities and fixed income markets. They take large positions in different markets, in different assets and in different currencies. They can do this because they have access to several institutions that" lend" them securities to trade on!!
With the use of numerical examples, we have shown how Collateral is exchanged between the borrower and the agency lender for securities lent. pre-approved collateral agreements determine the nature and value of collateral.
This video will help us understand the role of collateral in securities lending market

Пікірлер: 12

  • @rajvithakkar6495
    @rajvithakkar6495 Жыл бұрын

    Thank you! Amazing video

  • @sushilahariharan

    @sushilahariharan

    Жыл бұрын

    Thank you for your kind words

  • @saikumar-vx3xn
    @saikumar-vx3xn8 ай бұрын

    Great learning and very informative video, Thank you soo much

  • @sushilahariharan

    @sushilahariharan

    8 ай бұрын

    Thanks Sai for your kind words🙏

  • @sushilahariharan
    @sushilahariharan2 жыл бұрын

    I have used a LIVE SOFR rate for calculating the rebate fee

  • @sushilahariharan
    @sushilahariharan2 жыл бұрын

    This is the first time that that I have used SOFR after using LIBOR for 3 decades

  • @Diljale57
    @Diljale57Ай бұрын

    Why the lender giving rebate? Why he is not taking that earnings for themeself.

  • @vijayakuntigorla813
    @vijayakuntigorla813 Жыл бұрын

    Can we provide 50% cash and 50% non cash collateral in a agreement

  • @sushilahariharan

    @sushilahariharan

    Жыл бұрын

    Yup 👍 depends upon terms of loan agreement

  • @darkmatter4768
    @darkmatter4768 Жыл бұрын

    why do large institutions pledge cash collateral and pay interest for cash they have deposited (negative interest)? - what is the benefit here?

  • @sushilahariharan

    @sushilahariharan

    Жыл бұрын

    Borrowing securities Cash collateral

  • @darkmatter4768

    @darkmatter4768

    Жыл бұрын

    @@sushilahariharan did'nt get you. Can you make a video on impact of negative interest on cash collateral why do large firm pledge cash and pay interest on cash pledged?