Securities Finance Monitor Magazine Edition 3, our Technology Special, is now online. Hard copies were distributed at Clearstream GSF and IMN’s US Beneficial Owner Conference. Download your free copy here. We welcome your feedback.
This month, the US Treasury solicited input from market participants on what needs to be done to fix the growing imbalance in price spreads between older and newer treasury issues. We have been watching this for some time now to see how these kinds of imbalances would play out. What do securities finance markets have to say about the odd state of government bond markets, as reflected in our “prices”: rates on fixed income financing positions?
The nature of agency lending is changing along with financial markets in the post-Global Financial Crisis era. Agent lenders have become more responsive to their clients, as well as to the needs of their counterparties in the face of complex regulatory requirements. Some institutions view 2016 as an uncertain time for their agency programs, while others have doubled their commitments to the business. At BNP Paribas, we see a great future for our clients and our agency lending program, and we are paying careful attention to the exceptional markets and regulatory context to maintain a successful outcome.