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Securities Lending

Securities lending is an activity that seeks to generate incremental income by lending securities to approved borrowers, subject to associated risks. In three decades of lending securities on behalf of clients, BlackRock has focused on delivering competitive returns while balancing return, risk and cost.
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Capital at Risk. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. With securities lending there is a risk of loss should the borrower default before the securities are returned, and due to market movements, the value of collateral held has fallen and/or the value of the securities on loan has risen.

Why BlackRock for securities lending?

We believe in managing our securities lending operations on our proprietary platforms, rather than outsource this important function to a third-party. To that end, we have built a proprietary securities lending infrastructure so that lending activity is executed in our clients’ best interests and with prudent risk management.

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Skillful risk management

We take a conservative, low-risk approach and use Aladdin to integrate the capabilities of our dedicated research, trading and risk management teams.

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Proprietary technology

Our dedicated team works on custom-built reporting, operations and trading systems to help ensure transparency and operational efficiency.
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Robust assessment of borrowers

We select highly creditworthy borrowers based on conservative credit standards defined by our risk team, which operates independently from our securities lending business.

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