Pension funds miss out on ETF lending

Speaking at Data Explorer's Securities Financing Forum, BlackRock director Keshava Shastry says pension funds are often not aware they can lend ETFs and therefore "a lot of revenue is left on the table". ETFs can also be used as collateral in equities lending transactions. eSecLending head of global securities financing Chris Poikonen says in this case a pension fund could improve its position, provided that it is a highly liquid ETF with appropriate over-collateralization. This is particularly the case where certain ETFs can provide more diversification than a given basket of equi...