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Pledge GMSLA Anatomy: 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. | ||
===(Agent) {{pgmslaprov| | ===(Agent) {{pgmslaprov|Lender}}s who might like to use the Pledge GMSLA=== | ||
A pledge GMSLA would be useful and interesting in the following circumstances: | A pledge GMSLA would be useful and interesting in the following circumstances: | ||
*Where the {{pgmslaprov|Borrower}} is a [[bank]] or [[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 {{pgmslaprov|Borrower}} is a [[bank]] or [[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]] | ||
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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). | 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). | ||
==={{gmslaprov| | ==={{gmslaprov|Lender}}s who are ''not'' likely to use the Pledge GMSLA=== | ||
Any normal market participants when trading with each other, where the name of the game is ''funding optimisation'' and ''collateral efficiency''. Any securities lender who needs to use, reuse, rehypothecate posted collateral in their operations So brokers, dealers, banks, credit institutions — anyone who cares about balance sheet and capital efficiency — will ''not'' want to take collateral by pledge. | Any normal market participants when trading with each other, where the name of the game is ''funding optimisation'' and ''collateral efficiency''. Any securities lender who needs to use, reuse, rehypothecate posted collateral in their operations So brokers, dealers, banks, credit institutions — anyone who cares about balance sheet and capital efficiency — will ''not'' want to take collateral by pledge. | ||