Securities Lending Programs

The Exclusive Securities Lending program typically provides clients with guaranteed lending revenues. Clients that choose the Exclusive Lending program generally elect to do so because of compelling economic returns and the stable nature of income flow. Clients in the Exclusive Lending program grant Goldman Sachs the exclusive right to borrow securities from their portfolio for a pre-determined rate and period of time in a fully collateralized relationship.

Goldman Sachs is recognized in the market for the scope and scale of its securities lending services and has been actively borrowing and lending securities as principal for decades. Our firm supports domestic equity lending, international equity lending and fixed income lending. We seek portfolios that contain concentrations of securities with significant intrinsic lending value, including international equities, small- and mid-cap US equities, ADRs and high yield bonds. Our clients include corporate and public pension plans, endowments, foundations, mutual funds and investment management firms.

Goldman Sachs traders, due to their experience and market knowledge, are well positioned to evaluate our clients’ portfolios and aggressively price them in the lending market. Our traders understand the range of trading strategies that drive demand (e.g. convertible arbitrage, capital structure and risk arbitrage, among others) and the profitability underlying these trades, which enables Goldman Sachs to offer a highly competitive guaranteed revenue stream for our clients.