Securities Lending & Agency Repo
Expanding your portfolio
The need for capital to seize unexpected opportunities can arise at any time, which is one reason why we serve as a reliable funding partner for institutional investors. Our diverse global securities lending platform enables institutional investors to act quickly to generate income and revenue to expand their portfolios.
Clients benefit from our scalable program, whether held in custody with MUFG Investor Services or a third-party custodian. We specialize in lending fixed income, equities, and exchange traded funds (ETFs) in all major securities markets and can generate liquidity for our clients. And our flexible solutions offer third-party lending and custodial services while sustaining lending performance and maintaining clients’ risk tolerances.
Core services include:
Our Clients & Partners
We orchestrate scalable and flexible solutions across the entire investment value chain, so you can focus on growth.
The Global Securities Lending Solutions Group of MUTB-NY Bank executes securities lending and repo transactions as an agent for clients on a revenue-sharing basis. GSLS acts as an agent for either outside customers or affiliates, and does not conduct principal discretional trading activities. Our investment philosophy and approach is to achieve the best possible outcome for clients through the use of appropriate trading venues, market information, and commercial judgment. We rely on a combination of algorithms and human expertise to make decisions that are in the best interests of our clients. Algorithmic allocations ensure fairness and speed in transactions and are tailored to operate in parameters defined within client contracts.
However, there may be instances where algorithmic allocation does not result in the optimal outcome for the client, requiring manual intervention, even if not immediately economically advantageous. Manual intervention may also be necessary to incorporate non-quantitative information, take into account client instructions and risk tolerance, comply with regulations, manage exposure, changing market conditions, avoid technical errors, and align with the overall investment strategy and long-term investment goals. Decisions to override algorithmic allocations are carefully analyzed by the investment team and made with the objective of maximizing returns for the client in the long-term. We will always operate within the parameters defined within the client contract illustrate that our actions are taken to achieve the best possible results for clients. We have policies, procedures and appropriate governance and reporting structures in place to control and mitigate risks. While algorithmic allocations is a component of MUTB-NY’s transaction methodology, we have the ability to override these allocations if we believe that a different approach is necessary. Our investment professionals have extensive experience and knowledge in the financial markets, and they use this expertise to make informed decisions that are in the best interests of our clients. We recognize the value of human expertise and judgement in ensuring that our clients achieve the best possible results. By balancing both technological and human inputs, we are able to deliver superior outcomes for our clients. MUTB-NY’s ultimate goal is to achieve the best possible results for its clients over the long term taking a holistic view of the portfolio and alignment with the client’s investment goals, and that individual transaction economics are not always the best measure of success.