Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
Securities borrowing and lending (SBL) is a temporary loan of securities between the lender and the borrower. This is done to allow the borrower who expects the price of a stock to fall to hold a short position for a longer duration, while the lender who loans the stock receives a lending fee from the borrower.
SBL is an important activity in many markets as it provides greater liquidity, tighter spreads, better risk management and possibly reduces the cost of capital.
