Securities Lending – Banks

Securities Lending – Banks

• Wells Fargo also manages 14 different securities lending pools.
  • These are arrangements whereby we will lend client securities out to different broker dealers.
  • In exchange, we receive collateral, often in the form of cash, and that cash is then invested.
  • It’s an ALM business, and the idea is for us to invest that cash at a higher rate than we pay out on those loans.

—  David S. Sylvester, executive vice president at Wells Capital Management in Minneapolis, MN

2001 – SOA – Floating Rate Funding Agreements, rsa01v27n329pd – Society of Actuaries – 23p