Investors seeking to optimize portfolio performance and generate incremental revenue turn to securities lending as a way to realize the full value of their assets.
As one of the world's largest securities lending agents, BNY Mellon offers a full service securities lending program with an uncompromising focus on risk management. We provide outstanding opportunities to lend both equities and fixed income securities in 27 markets around the world.
Customized Lending Profiles for Individual Needs
Working closely with each investor, we develop client-specific guidelines as the basis for a customized securities lending relationship, which includes the Bank's indemnification, stringent compliance with the client's reinvestment guidelines, counterparty risk management, daily marking-to-market, loan collateralization and margin protection. As many of our institutional clients are sophisticated money managers, we can also structure a unique collateral re-investment program that allows clients to manage the investment of their own collateral, thereby more actively controlling their investment risk and performance.
Leading the Way in Income Generation and Reporting
Ranked as the number one custodial lender and number one overall amongst its peers by beneficial owners for the second consecutive year in the ISF/Global Investor 2006 Annual Beneficial Owners’ Survey, we work with clients to tailor programs that help them generate optimum returns and unlock their investment potential. Understanding that performance is key, we chart earnings based on a portfolio's intrinsic value by comparing the client's individual securities lending portfolio to a money market index. Comprehensive reporting of portfolio performance versus market performance is then delivered via INFORMSM, the Bank's Web-based information delivery platform.
INFORM gives clients control over the monitoring process, allowing them to review the program's performance, track loans and collateral re-investments, note exposure to a variety of risks including interest rate and borrower exposure, and ensure compliance with guidelines every step of the way. INFORM also provides monthly earnings attribution analysis to allow effective assessment of the risks associated with re-investment guidelines versus the return created by market demand for portfolio securities.
