Customer Reviews

Securities Finance: Securities Lending and Repurchase Agreements (Frank J. Fabozzi Series)

5 star:		(2)
4 star:		(1)
3 star:		(0)
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1 star:		(0)

 

 

The chapters are written by various people, often active in companies involved in creating or trading these securities or repos. Thus, an author from Countrywide Securities, and another from Ernst and Young. Also, the book is very recent.

Hence, you get a good education in current understanding and practices involving the lending of securities. There is a natural progression in logic, from the base securities to options and repos that are derivatives of this base. Plus, several chapters address the key issue of what are the various types of risks involved, and how to quantify these.

I found the book to be excellent and informative. Being that Sec Lending and Repo for me personally have been learned in a second hand manner when rolling out Global One at UBS NA in 98, and setting up Martini Repo's Back End for Fortis, understanding these business models without such a book as Frank Fabozzi's had been challenging.

I have given it one read, and will reread, as any book I view should be read at least twice if not more. In particular, I enjoyed seeing the evolution of Securities Lending. I had expected to see more on Settlement and Clearing and plan to look for books on this too.

Two of the questions provoked in the first read was 'How much is the Industry Actually Leveraged'. In other words, in terms of the possible shorting on the loan itself from the Lender; and if the Lender is also a Borrower from another Lender; and what operation controls should be in place in order to not make duplicate loans of the same security?

In particular , I liked the detailed description of evaluating collateral ( both on book, and off book )

Very few books cover this subject are so comprehensively for the non-practitioner. I really felt I had a grip on Securities Lending and Finance by the time I finished this book.

Recommended highly