State Street Direct Access Lending
State Street Corporation has launched Direct Access Lending, a peer-to-peer securities finance product which enables direct, principal loans between its lending and borrowing clients.
State Street said that it will be able to facilitate the direct lending transactions through leveraging its Agency Lending and Enhanced Custody programs and offering both sets of customers the benefits of access to each program.
“Over the last decade, we have worked hard to manage balance sheet constraints across banks and broker/dealers participating in securities lending,” Martin Tell, global head of Securities Finance, said.
“State Street has created a number of innovative solutions to support our clients, expanding our program to add new markets and collateral types and diversifying methods for borrowers to post noncash collateral by pledging securities instead of a title transfer. With this prior innovation and development, we are uniquely positioned to create a peer-to-peer securities finance platform given the scale and sophistication of the Agency Lending and Enhanced Custody businesses that we run today.”