From the February 2011 issue of Treasury & Risk magazine

Securities Lending Outlook

Lending out securities from a pension plan's portfolio can generate extra revenue for the plan, but a recent report shows pension plan sponsors see that revenue shrinking.

Sixty percent of plan executives expect income from securities lending to decline over the next two years, reflecting less demand from hedge funds as well as the impact of new collateral guidelines, according to a survey of 98 U.S. public and corporate pension plans by Finadium, a financial markets research and consulting firm.

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