Callan Associates

"Callan College" on Securities Lending

Session dates still to be determined.

Sample Agenda

Securities lending virtually ground to a halt in 2008 as a result of the deepening credit crisis and extreme market volatility that swept over the capital markets. The vast majority of institutional investors who participate in securities lending, either through stand-alone programs or collective trusts, have been impacted by the credit crunch. Callan Associates will share its securities lending expertise at a one day “Callan College” designed to expand the participants’ knowledge, understanding, and comfort with securities lending practices and trends in the midst of this market turmoil.

The “Callan College” on Securities Lending will cover the following:

• Mechanics of Securities Lending - Back to basics discussion on the steps and mechanics of the transaction; mark to market, collateralization, regulatory framework; and the key concepts of defining demand and reinvestment spreads.
• Borrower and Lender Motives - Why borrow? A closer look at the universe of providers and market participants, including route to markets (i.e., agent, principal, and hybrid programs), as well as the impact of securities lending on capital markets, credit, and liquidity.
• Risks - Discussion on operational risk, borrower/counterparty default, trade settlement risk, currency risk, and collateral reinvestment risks. This session will provide detail on what plan/fund sponsors need to know and what questions to ask about their securities lending programs.
• Case Study and Q&A - "The Credit Crisis and the Impact on Securities Lending" and “What Have We Learned?” – We will focus on the events surrounding the Lehman collapse and the implications to securities lending and the markets, including regulatory and market participant behavior. We will also discuss the ensuing problems regarding losses and a closer look on exit strategies, and will tackle the concept of intrinsic value lending and the future of securities lending.

Tuition for Callan Fund Sponsor Clients is included with your client relationship. Tuition for Investment Managers is $500.00 per person. Tuition includes instruction, all materials, breakfast, and lunch.