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In the latest part of our Orbisa analysis series, tracking the impact of the banking turmoil which began with SVB, we look at the continued impact on securities lending as of March 23.
Orbisa data continues to track the impact of volatility within the banking sector on the securities finance marketplace. Nearly two weeks after the collapse of SVB, we are closely monitoring both macro and security-level momentum.
From a high-level, cost-to-borrow has begun to stabilize relative to the more severe swings of last week. This could be an indication that the marketplace does not expect a significant contagion effect among a high number of institutions. However, both First Republic Bank and Credit Suisse experienced cost-to-borrow increases over the past two days as liquidity issues and the latter’s emergency buyout have continued to stoke investor concerns.
The following table highlights selected banking securities that have seen impact to the percentage of their shares that are out on loan and the relative cost to borrow those shares.
As the broader industry reacts to yesterday’s FED rate decision, Orbisa continues to monitor the impact on securities lending and provide up-to-date insights.
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Originally Posted March 23, 2023 – SVB Financial (SIVB) and the Impact on Securities Lending Part 4
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