SECURITIES LENDING & REPO MARKETS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - OCTOBER 2010

OVERVIEW OF THE SECURITIES FINANCING MARKETS

In terms of collateral analysis, as displayed in the following pie chart, the share of German securities arrives first (26.4% as at December 2009 according to ICMA’s survey), followed by UK collateral (12.4%) and Italy (10.9%).

Figure 19: Collateral analysis in the European repo market as at December 2009

Others 8.4%

Other OECD 10.5%

Germany 26.4%

Japan 2.1%

Denmark & Sweden 2.2% US 3.1%

Italy 10.9%

UK 12.4%

1.4

France

8.7% Belgium 1.7%

Other eurozone 9.4%

Spain 4.2%

Source: 18th ICMA survey, March 2010

As already mentioned, German government bonds are considered high quality and highly liquid collateral and are very desirable. There is a lot of activity surrounding them and in- creasingly so in a market dominated by a desire for high quality assets 10 .

10 Source : Securities Lending Times, “Country focus – Germany”, Issue 002, June 2010

Securities Lending & Repo markets | page 29