Indemnification and Securities Lending: The conversation goes on and on….

Boss playing with employees

The debate on indemnification just won’t go away. And for good reason. A panelist at one session of the IMN Beneficial Owners conference called it a “central building block” to the sec lending business. Beneficial owners see it as their sec lender partner bearing some of the investment risk, an example of “skin in the game”.

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At the IMN Beneficial Owners conference in San Francisco: CCPs and sec lending

During the CCP panel at the IMN Beneficial Owners Conference in San Francisco (which I moderated), there was an unspoken message: how do we break the news that eventually using CCPs may not be optional? 

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businessmen talking on a homemade can phone

We need simple new names for financial market institutions (Premium Content)

We argue for better language to describe various functions in financial markets. There are banks and bank holding companies that offer a wide variety of credit intermediation and agency services. There are nonbanks including hedge funds and asset managers that provide liquidity and offer credit intermediation. Calling something Shadow Banking doesn’t work when we are talking about financial market activities since banks can perform supposedly Shadow Banking activities, and nonbanks like insurance companies and corporates issue funding obligations, like a bank, on a regular basis. The language doesn’t work. We propose here some straight-forward alternatives based on function, not form.

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