Steve Kiely, head of securities finance new business development for BNY Mellon, talks to Funds Europe about a more mature, post-crisis attitude within the securities lending market. In 2015, the appetite for securities lending has remained strong and, more importantly, has been balanced. While the number of general collateral trades and general utilisation may be down, the demand for hard-to-borrow stocks or specials-only programs are both up.
“Risk management is exponentially greater among participants now than it was in the pre-crisis era,” says Kiely. “Beneficial owners are much more aware that, when it is managed properly, securities lending is a comparatively low risk business.”
This article originally appeared in Funds Europe, December/January 2016. It is being reproduced here with approval from the publisher.