Securities Lending

How to generate additional income through securities lending? SGSS and the Societe Generale group support buy-side companies in enhancing the performance of their portfolios.

Overview

In a highly competitive environment for buy-side companies, Securities Lending services can help you increase the profitability of your portfolio. Revenues from Securities Lending depend on several factors, including the nature of the assets lent and market conditions (supply and demand for a given asset class, or for a given security, may vary over time).

Securities Lending solutions provided by Societe Generale Securities Services have an excellent track record on a wide range of securities, helping our clients enhance the profitability of their investments, be they large or medium size players (asset managers, sovereign funds, insurance companies, other asset owners...).

Discover our Securities Lending Services.

Key features and benefits

Our solution provides the global safety of the lending agency programme brought by Societe Generale group, a leading financial intermediary of the Euro area:

  • Market risk on collateral in the case of borrower default can be taken by Societe Generale,

  • Potential delay risk on payment of dividends/coupons indemnities and revenues is taken by Societe Generale,

  • Programmes are tailored and structured to follow the risk profile and regulatory guidelines of the client,

  • As agent, Societe Generale Securities Services organises the lending without being the counterparty.

Our securities lending programmes include high-level front-to back services with:

  • A dedicated team with a long-standing expertise in securities lending,

  • A flexible solution, allowing securities to be recalled and/or switched, particularly in case of sale,

  • State-of-the-art management of corporate actions,

  • A diversified cross-asset Securities Lending offer for investors.

Tailored collateral management in securities and/or cash with re-investment in money-market funds or reverse repos.

Our solution provides secure paying services as well as optimal monitoring:

  • Accrued interests are paid monthly by Societe Generale Securities Services on the contractual date,

  • Our securities lending programmes provide complete reporting (activity and best execution reporting, performance benchmarking, and regulatory reporting) as well as a comprehensive income report by portfolio and by product – including detailed stock position, stock valuation summary with a comparison between the lent securities valuation and the received collateral valuation – a cash reinvestment report, a global performance report and an invoicing report,

  • SGSS objectives are aligned with those of the lender, with our fees representing a fraction of the revenue generated by the securities lending programme. As a lending agent, optimal performance of your programme is therefore our mutual interest.

SG Markets, the Group’s secure BtoB 24/7 trading and information online platform, allows you to to manage, monitor and steer your operations at all times.

The open architecture of our securities lending programmes ensures flexibility, as Societe Generale Securities Services is not necessarily the custodian of the securities that can be lent.

Integration of your ESG (Environment, Social, Governance) strategy throughout the entire securities lending programme: ESG analysis of borrowers; ESG selection of securities as non-cash collateral; total or partial recall of shares for voting at general meetings. Find out more about our ESG offering.

To find out more about our securities lending solutions, please click on our brochure below:

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