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
Thank you! Amazing video
@sushilahariharan
Жыл бұрын
Thank you for your kind words
Great learning and very informative video, Thank you soo much
@sushilahariharan
8 ай бұрын
Thanks Sai for your kind words🙏
I have used a LIVE SOFR rate for calculating the rebate fee
This is the first time that that I have used SOFR after using LIBOR for 3 decades
Why the lender giving rebate? Why he is not taking that earnings for themeself.
Can we provide 50% cash and 50% non cash collateral in a agreement
@sushilahariharan
Жыл бұрын
Yup 👍 depends upon terms of loan agreement
why do large institutions pledge cash collateral and pay interest for cash they have deposited (negative interest)? - what is the benefit here?
@sushilahariharan
Жыл бұрын
Borrowing securities Cash collateral
@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?