Long-only investment managers could use hedge fund short-selling data as a sign post for stock prices, finds Lynn Strongin Dodds. But there are questions about whether data provides enough information about market direction and whether it is economical.
Benchmarking is an increasingly important service for asset managers and asset owners involved in the securities lending market. Nicholas Pratt examines the offerings of three main providers.
Fixed income lending has stayed stable while equities business has declined. Lynn Strongin Dodds looks at certain drivers, such as regulation and tapering, that could see bond lending start to rise.
Indemnification in securities lending means providers have 'skin in the game', keeping them honest. But there are signs that indemnities are weakening. Plus, directors of Ucits funds should scrutinse lending agents' fees more. These are two of the issues our lending panel discusses. Chaired by Nick Fitzpatrick.
Regulators favour centralised clearing, but central counterparties have a tough job getting lenders to use them, finds Nicholas Pratt.
