Securities lending indemnification for investor portfolios continues to be heavily in demand. Many agents offer their participants varying levels of indemnification options for their lending and collateral reinvestment programs. Indemnification is an important part of the agent lending business and is a key consideration for many investors engaged in securities lending. However, regulations and the ensuing capital charges associated with providing indemnification are increasingly changing how indemnification is perceived, offered and priced. Investors should be cognizant of how their programs are evolving and the options they have in today’s regulatory environment.
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Article originally published in the "Securities Lending Monitor" on January 2017