Global Security Lending Market Highlights and Trends

1
Global Security LendingMarket Highlights and
Trends

• Hedge Funds
• Expansion of hedge fund industry fueling business
• Alternative investment strategiesbroaden
  collateral range
• Routes to Market/Unbundling
• Automated trading facility via Equilend
• Desk calls and daily trading book
• Auction/exclusive capabilities
• Open vs. term trading
• Custody Lending vs. 3rd Party Lending
• Unbundling of custodial and lending mandates
• Understanding pros and cons of lending programs
  and providers
• Custodial providers vs. agency providers-is
  there a difference?

2
Global Security LendingMarket Highlights and
Trends

• Transparency
• Agency Disclosure Lending Initiative (ALDI)
• Price discovery
• Beneficial owners more hands on
• Performance Measurement/Benchmarking
• How portfolio holdings affect income and
  performance
• Risk/Return monitoring
• Data Explorers performance benchmarking
  technology
• Risk Adjusted Return
• Evaluating risk adjusted returns
• Reporting tools for performance, risk, and
  benchmarking analytics
• Portfolio transparency and risk-adjusted
  performance assessment

3
Global Security LendingMarket Highlights and
Trends

• Global Tax Harmonization
• New tax legislation within major markets
• Dividend arbitrage revenues diminishing
• Product Development
• Taiwan / India / Czech Republic / Hungary
  / Turkey / Malaysia / China
• Global expansion of borrower base
• Collateral flexibility