Financing and Collateral
As margin requirements become increasingly complex, investors are looking for a reliable partner to help them lower their collateral requirement, and free up cash and highly sought securities to create incremental returns. Managers are looking to access liquidity easily and need actionable insights to support their trading activity and long-term objectives. Collateral and financing are inextricably linked, and we are driving multiple initiatives to support our buy-side clients in new ways. We aligned our securities and financing solutions to deliver a holistic and flexible set of short-term liquidity and collateral trading solutions, with comprehensive collateral management capabilities, and pre- and post-trade analytics. Our solutions help you solve your short-term investment and financing needs, bring accretive collateral allocation decisions into front-office, while also making them easier for your organization as a whole.
Acting as agents, we manage all trading activities and related functions. You gain tailored solutions that offer enhanced yield and extensive risk monitoring oversight. Our depth of lendable assets and strong market position provide you with more trading opportunities and competitive pricing.
The ability to borrow and finance securities directly from your custodial account eliminates the need for triparty arrangements, providing you with greater visibility and control over your assets. Take advantage of a range of financing solutions, from memo-pledge and self-financing to self-borrow and repledge.
Alternative financing solutions
For your financing needs, our multifaceted solution provides new ways to secure stable sources of funding. Long positions within your custody account are pledged to access cash from our balance sheet. Securities are rehypothecated through agency lending, a transparent and low-risk alternative to traditional rehypothecation, with the operational safeguards of our established program.
Direct access lending
Our managed peer-to-peer lending service offers an operationally efficient program for lenders and borrowers of United States equities, providing beneficial owners and alternative funds with new distribution channels and the potential to enhance returns. As an enhanced custody client, you can borrow directly from participating State Street agency lending clients.
Through end-to-end capabilities that include pre- and post-trade optimization tools, we help you manage counterparty exposure, monitor collateral needs and eligibility, and coordinate an efficient approach to margin management.
FICC sponsored member repo
FICC Sponsored Member Repo allows you to unlock the benefits of centrally cleared repo without needing to satisfy all of the obligations of a direct clearing member, offering operational efficiency and counterparty risk reduction.
Our Peer-to-Peer Repo program assists you in accessing new pools of liquidity and competitive pricing.
Using our full suite of short-term solutions to support our buyside clients’ increasing interest in optimizing their portfolio holdings, you can now achieve more efficient margining, repo financing, margin-like financing and securities lending by identifying potential areas for savings, profits and, ultimately, achieving alpha.
The Future of Collateral Redefined
Learn more about current trends and challenges and the future of collateral management opportunities.
The Determinants of Inflation
We use statistical techniques to measure the time-varying influence of cost push, demand pull, inflation expectations on inflation regimes.