Global Investor Group spoke with Credit Benchmark co-founder Mark Faulkner on peer-to-peer lending for an article in the latest Securities Finance Americas Guide.
The article notes that proponents of peer-to-peer securities lending are confident that rather than taking business from agent lenders, its wider use will facilitate deals that would not have happened in a conventional transaction environment.
“The obvious demographic for peer-to-peer lending are those global beneficial owners with an innovative approach to their securities lending programmes, such as the largest sovereign wealth funds and pension plans as well as sophisticated asset managers. “These entities self-select because they are institutionally curious and are often amenable to new ideas, including the idea of dealing with new types of counterparts,” observes Mark Faulkner, co-founder of Credit Benchmark, who says counterpart expansion or counterpart extension or even non-standard counterpart selection is perhaps a better way of characterising this activity since peer-to-peer implies activity only between a pension fund and a pension fund, for instance.”
Global Investor Securities Finance Americas Guide, Summer 2021.
To download the 2021 guide and read the original article, please click the link below.