Brookline Bank’s Post

45% of US firms moved deposits to large banks in the past year - Industry roundup: 19 June: #BankDeposits #CounterpartyRisk #InstantPayments #FX #EmbeddedFinance #CarbonCredits #TradeFinance #CorporateBanking #Trading #DigitalBanking

Missy Dolski, Värde's Global Head of Capital Markets, spoke with American Banker about the growing importance of credit-linked notes, or synthetic risk transfers (SRTs), as banks look to offload risk. She notes that asset types that work well for both banks and investors have "low loss history and are high credit quality but carry very punitive risk weightings,” including capital call lines, revolving credit lines to investment grade corporations, prime auto loans and mortgage warehouse loans. Read the full article here: https://lnkd.in/eVB2ygHe

Securities lending market dynamics are changing, driven by ongoing efforts at financial institutions to improve balance sheet efficiencies and Basel III Endgames around the world that create further capital and operational requirements. These factors, along with regulatory mandates like the move to T+1 settlement and securities lending reporting under SEC Rule 10c-1, mean that beneficial owners should be prepared to review their agent lender relationships, consider their lending parameters and investigate new routes to market. Fidelity Investments More on #finadium: https://lnkd.in/gBQkaPmq

Thank you Finadium for this insightful article. I was happy to share some thoughts about market dynamics impacting securities lending. Financial institutions are seeking ways to improve balance sheet efficiencies and are navigating regulatory mandates. With these changing dynamics, now may be the time for beneficial owners to review their current agent lender relationship, lending parameters, and investigate new routes to market. Read now. Learn more about Fidelity Agency Lending. https://lnkd.in/ed-g5txx   #SecuritiesLending #AssetManagers #MutualFundManagers #SecuritiesFinance #Finadium

Fidelity estimates that the RWA cost for facing certain counterparties could be 36 bps under the Basel III Endgame. The Basel III Endgame will sharply curtail banks’ ability to use internal models to determine counterparty risk weights, and instead apply standard risk weights. For secured funding transactions, this means that risk weights for low-risk counterparties such as money market funds could increase by as much as 10x. Add in the price volatility of haircuts and RWAs will increase substantially. Sponsored clearing models will not reduce the impact of higher counterparty risk weights as sponsoring members are required to guarantee the performance of sponsored members. The guarantees generate the same counterparty exposures as equivalent principal transactions. Sunthay’s Guaranteed Repo structure alleviates the impact of the Basel III Endgame substantially as guarantors do not have exposure to end providers, who are the counterparties that will generate the greatest increases in RWAs. Guaranteed Repo is also excluded from the SLR, LCR and NSFR, as well as from most elements of the GSIB Surcharge. As a result, it is the most efficient secured financing solution available. Please see Shiv Rao and SUNTHAY for more information on Guaranteed Repo.

Thank you Finadium for this insightful article where Fidelity Agency Lending’s Justin Aldridge and Doug Brown, CFA Brown shared their thoughts about market dynamics impacting securities lending. Financial institutions are seeking ways to improve balance sheet efficiencies and are navigating regulatory mandates. With these changing dynamics, now may be the time for beneficial owners to review their current agent lender relationship, lending parameters, and investigate new routes to market. Read now. Learn more about Fidelity Agency Lending. https://lnkd.in/ekfe494X #SecuritiesLending #AssetManagers #MutualFundManagers #SecuritiesFinance #Finadium 

Thank you @Finadium for this insightful article. I was happy to share some thoughts about market dynamics impacting securities lending. Financial institutions are seeking ways to improve balance sheet efficiencies and are navigating regulatory mandates. With these changing dynamics, now may be the time for beneficial owners to review their current agent lender relationship, lending parameters, and investigate new routes to market. Read now. Learn more about Fidelity Agency Lending. https://lnkd.in/gVXV_AsH   #SecuritiesLending #AssetManagers #MutualFundManagers #SecuritiesFinance #Finadium

Securities lending market dynamics are changing, driven by ongoing efforts at financial institutions to improve balance sheet efficiencies and Basel III Endgames around the world that create further capital and operational requirements. These factors, along with regulatory mandates like the move to T+1 settlement and securities lending reporting under SEC Rule 10c-1, mean that beneficial owners should be prepared to review their agent lender relationships, consider their lending parameters and investigate new routes to market. Fidelity Investments More on #finadium: https://lnkd.in/g2RsGSbt

Thank you Finadium for this insightful article where Fidelity Agency Lending’s Justin Aldridge and Doug Brown, CFA shared their thoughts about market dynamics impacting securities lending. Financial institutions are seeking ways to improve balance sheet efficiencies and are navigating regulatory mandates. With these changing dynamics, now may be the time for beneficial owners to review their current agent lender relationship, lending parameters, and investigate new routes to market. Read now. Learn more about Fidelity Agency Lending. https://lnkd.in/etkmytsg #SecuritiesLending #AssetManagers #MutualFundManagers #SecuritiesFinance #Finadium 

The article sheds light on how bank runs can impact personal cash deposits, highlighting an essential point: people often underestimate their bank's exposure to liquidity risks. This raises a critical question for many: are our savings as secure as we believe? How do you interpret this statement, and what precautions are you taking to ensure your financial stability in light of such risks? https://lnkd.in/eB2m5kXR