Vertical: Financial Management
In theory, anyone who owns a security can lend it. In practice, only institutional investors have had the ability to do so. Until now.
Typically, lenders are looking for a way to increase returns on their portfolios, while borrowers (usually banks and hedge funds) are looking to facilitate market-making and other trading activities such as hedging and short selling.
When you lend out a security, you do it over a period of time, on a collateralised basis, in exchange for a fee. You retain all ownership benefits for the duration of the loan except the right to vote, but you can terminate the loan and recall the security at any time.
Generate new streams of revenue from assets you already own.
Retain all the economic rights on these assets – bar the right to vote.
Terminate the loan and recall the security at any time.
Benefit from your loans being over-collateralised at an average of 105% of the loan value, which minimises risk to your capital.