Jun 25, 2010
JERSEY CITY, N.J., June 25, 2010 — Pershing LLC, a BNY Mellon company, announced today the availability of a new independent study, Lending and Leverage: The New Securities Finance Model for Hedge Funds, which examines the changing business model of securities financing for hedge funds in 2010 and beyond.
Hedge funds are currently being offered new avenues to satisfy their financing needs, driven in part by a divergence in business models between large and small prime brokers. Lending and Leverage: The New Securities Finance Model for Hedge Funds, which was developed with Finadium LLC, draws on proprietary investor surveys, as well as primary and secondary research, to provide insights into changing investor attitudes and an evolving regulatory environment. It also offers guidance on how hedge funds can execute successful lending programs for the future. Highlights from the study include:
"The major challenge for hedge funds of all sizes continues to be access to hard-to-borrow securities. A prime broker with access to inventory, whether through electronic markets, retail pools or relationships with institutional lenders, is critical," said Craig Messinger, managing director of Pershing Prime Services. "Forging a strong operational relationship with a prime broker is critical to a hedge fund's success, regardless of where securities loans are sourced."
Josh Galper, managing partner of Finadium stated, "Going forward, hedge funds will need to spend more time focusing on the costs and means by which they obtain securities loans. As more transparency enters the securities lending market, investors are looking for hedge funds to demonstrate an ability to secure the best financing for their trades. This in turn places a greater emphasis on how funds source securities lending inventory and how they manage their prime brokerage relationships."
Pershing Prime Services delivers an unconflicted, comprehensive suite of global prime brokerage solutions, including extensive access to securities lending, dedicated client service, robust technology and reporting tools, worldwide execution and order management capabilities, a broad array of cash management products and the integrated platform of BNY Mellon. Pershing Prime Services is a service of Pershing LLC. A copy of Pershing's new independent study and additional information about Pershing Prime Services' capabilities and solutions are available at www.pershingprimeservices.com.
Pershing LLC (member FINRA/NYSE/SIPC) is a leading global provider of financial business solutions to more than 1,150 institutional and retail financial organizations and independent registered investment advisors who collectively represent approximately five million active investors. Located in 20 offices worldwide, Pershing and its affiliates are committed to delivering dependable operational support, robust trading services, flexible technology, an expansive array of investment solutions, practice management support and service excellence. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Borse, the Irish Stock Exchange and the London Stock Exchange. Pershing LLC is a BNY Mellon company. Additional information is available at www.pershing.com.
BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $22.4 trillion in assets under custody and administration, $1.1 trillion in assets under management, services $11.8 trillion in outstanding debt and processes global payments averaging $1.5 trillion per day. Additional information is available at www.bnymellon.com.