Brown Brothers Harriman specializes in securities lending for asset managers, with approximately 90% of our clients representing this industry segment. Asset managers who work with BBH are assured of a specialized program customized to their unique needs.
Supported through a “custodian-neutral” platform, all BBH securities lending clients receive the same level of operational excellence, flexibility and service, regardless of their custodian. Over 50% of our business is driven by “third party” lending and we maintain automated connections with most global custodians.
The Importance of Risk Management
Lending for asset managers is different to the type of lending typically favored by Pensions, Banks, Sovereign Wealth Funds and Insurers. This difference is rooted in the management of risk. BBH is an expert at structuring securities lending programs that maximize our clients returns within specific risk tolerances.
The Securities Lending Trading Dynamic
Un-encumbered by maintaining a large volume lending program, BBH is uniquely positioned to execute value-driven strategies for our clients. By partnering with BBH, asset managers can be certain they will be joining other like-minded lenders, in a program that has a unique structural advantage in negotiating fees for their highest value loans.
Our trading strategy maximizes return from a relatively small number of trades that offer the most meaningful returns, via a global trading team in London, Boston and Hong Kong who have a deep understanding of the dynamics driving borrower demand. We utilize technology to automate low-value trading activity that supplements these high-margin opportunities.
Pioneering Digital Tools Built for Unique Needs
Pre-trade, BBH offers Securities Lending DealBoard, which enables our clients to see revenue opportunities, borrowing demand and share price trends in one place. Our clients can see – and act on – every opportunity across their funds. Post-trade, we have launched a new digital experience to deliver the next generation of transparency, allowing our clients to oversee their lending program in real time, monitoring revenue and the markets that generate it.
BBH Securities Lending Execution Policy