Securities Lending Indemnifications: Why Care and Default Scenarios

The inspiration for this topic was a recent paper from Mark Faulkner co-founder of Credit Benchmark entitled: "Something Better Change: Securities Lending Indemnification is Unsustainable in its Current Form". In this video I describe the economics of the business, identify why the cost of indemnifications is an important issue, provide examples of firms that did go bust or needed rescuing and give illustrative examples of loss scenarios and where an indemnification would and wouldn't be needed. The second in a three part video. You can find Mark's paper at https://www.creditbenchmark.com/somet... Chapters Introduction 0:00 Why should we care about indemnities? 1:57 The scale of Securities Lending 3:35 Safety nets in securities lending 7:23 Firms that went bust or were rescued 8:22 Three potential default scenarios 11:16 Pierpoint is THE place for securities lending content - blogs, podcasts, white papers and access to two key resources for people committed to growing in the securities finance space. Pierpoint Securities Finance Academy - learning central for securities lending, collateral management and repo. Both free and paid-for courses are available at https://www.pierpoint.info/courses Pierpoint Alpha Community - the only membership club for securities lending, repo and collateral management professionals: https://www.pierpoint.info/pac If you get value from our content and want to show us your appreciation, why not Buy us a Coffee at https://www.buymeacoffee.com/pierpoint