Securities lending arrangements arise when a holder of securities agrees to provide them to a borrowe...
Securities lending arrangements arise when a holder of securities agrees to provide them to a borrower for a period of time. At the end of the period, the borrower returns replacement securities that are either the original securities or the equivalent in number and type. The borrower provides the lender with collateral for the term of the loan and pays the lender a fee for the use of the borrowed securities. The borrower also compensates the lender for rights and distributions accruing on the borrowed securities. The lender therefore retains the same portfolio as they had at the outset. Bo...
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