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Pledge GMSLA: Difference between revisions
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Agent lenders are one class of lender who isn't so bothered about reusing the collateral, because ''it'' didn’t lend to you in the first place, but lent its client’s securities to you, and these clients aren't so bothered about reuse. | Agent lenders are one class of lender who isn't so bothered about reusing the collateral, because ''it'' didn’t lend to you in the first place, but lent its client’s securities to you, and these clients aren't so bothered about reuse. | ||
===Likely uses for the Pledge GMSLA=== | |||
A GMSLA would be useful and interesting in the following circumstances: | |||
*Where the {{gmslaprov|Borrower}} is a financial institution that would incur a capital/balance sheet charge under [[Basel III|Basel]] rules for the return of excess collateral it has provided by [[title transfer]] | |||
*Where the {{gmslaprov|Lender}} does not wish to reuse the collateral, being happy for it to be "dead-ended" in a collateral management system. | |||
In other words this is likely to be restricted to [[agent lender]]s and quasi-agent lenders ([[Luxembourg fiduciary|fiduciaries]], [[Espievie|espievies]], [[Repackaging programme|repackaging]] vehicles). | |||
===Close-out=== | ===Close-out=== | ||