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Securities Finance
Securities Lending and Repurchase Agreements

Frank J. Fabozzi (Author), Steven V. Mann (Author)

9780471678915, Wiley

Hardback, published 26 August 2005

368 pages
23 x 16.3 x 2.7 cm, 0.62 kg

In Securities Finance, editors Frank Fabozzi and Steven Mann assemble a group of prominent practitioners in the securities finance industry to provide readers with an enhanced understanding of the various arrangements in the securities finance market. Divided into three comprehensive parts—Securities Lending, Bond Financing via the Repo Market, and Equity Financing Alternatives to Securities Lending—this book covers a wide range of securities finance issues, including alternative routes to the securities lending market, evaluating risks in securities lending transactions, U.S. and European repo markets, dollar rolls and their impact on MBS valuation and strategies, derivatives for financing equity positions and equity repos, and more. Filled with in-depth insight and expert advice, Securities Finance contains the information readers need to succeed in this rapidly expanding market.

Preface ix

About the Editors xiii

Contributing Authors xv

Part One Securities Lending 1

Chapter 1 An Introduction to Securities Lending 3
Mark C. Faulkner

Chapter 2 Securities Lending, Liquidity, and Capital Market-Based Finance 39
State Street

Chapter 3 Finding a Route to Market: An Institutional Guide to the Securities Lending Labyrinth 57
Mark C. Faulkner

Chapter 4 Evaluating Lending Options 79
Anthony A. Nazzaro

Chapter 5 The Auction Process and Its Role in the Securities Lending Markets 87
Daniel E. Kiefer and Judith G. Mabry

Chapter 6 The Fundamentals of Fixed Income Securities 107
Frank J. Fabozzi

Chapter 7 Managing Liquidity Risks in Cash-Based Lending Programs 127
Ed Blount and Aaron J. Gerdeman

Chapter 8 Quantifying Risks in Securities Lending Transactions 141
Mark C. Faulkner

Chapter 9 Risk, Return, and Performance Measurement in Securities Lending 151
Peter Economou

Chapter 10 Developing Effective Guidelines for Managing Legal Risks—U.S. Guidelines 167
Charles E. Dropkin

Chapter 11 Tax Issues Associated with Securities Lending 179
Richard J. Shapiro

Chapter 12 Accounting Treatment of Loans of Securities 205
Susan C. Peters

Part Two Bond Financing via the Repo Market 219

Chapter 13 Repurchase and Reverse Repurchase Agreements 221
Frank J. Fabozzi and Steven V. Mann

Chapter 14 The European Repo Market 241
Richard Comotto

Chapter 15 Overview of U.S. Agency Mortgage-Backed Securities 255
Frank J. Fabozzi

Chapter 16 Dollar Rolls 283
Frank J. Fabozzi and Steven V. Mann

Chapter 17 Evaluating the Interaction of Dollar Rolls and MBS Investments 299
Anand K. Bhattacharya, Paul Jacob, and William S. Berliner

Part Three Equity Financing Alternatives to Securities Lending 315

Chapter 18 Equity Financing Alternatives to Securites Lending 317
Frank J. Fabozzi and Steven V. Mann

Index 333

Subject Areas: Finance & accounting [KF]

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