Reading 21_Introduction to Fixed-Income Portfolio Management
“In cases where the securities loan is initiated for financing purposes, the lending fee is typically negative, indicating that the security lender pays the security borrower a fee in exchange for its use of the cash.”
What does that mean? When a security lender pays a fee to security borrower in exchange for cash, that basically means the “security lender” is using the security as a collateral in borrowing cash from the “security borrower”, right?
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.