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Fig 10: Global Securities Lending Government Bond Market - Cash Versus Non-Cash Fig 12: Global Government Bond Lendable Supply - By Fund Type

€290B €760B
Banks/Broker Dealers 3%
Corporations/LLP/LLC 2%
On-Loan Balance vs Cash On-Loan Balance vs Non-Cash Government/Sovereign Entities/Central Banks 29%
Foundation/Endowment <1%

Insurance Companies 8%

Mutual/Retail Funds 25%
Pension Plans 28%
€0 €680B
Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Undisclosed/Other 4%
Source: IHS MArkit Source: DataLend

prudential reporting regimes, is the ability to secure term business that did not exist several years ago. Latest the link between key institutional investors and the pro- This represents a marginal change in both the lendable
HQLA for periods of three months or more. This allows information from DataLend suggests that circa 15% of vision of liquidity. and the on-loan numbers, that were 32% and 35% respec-
the borrower to include any borrowed securities in its all government bond lending is undertaken on a term tively at the end of June 2019.
LCR calculation as part of its balance sheet management basis, although we feel that this number is understated, As at 31 December 2019, data from DataLend shows that
regime. We have tracked the development of this term with the real number being as high as 50%. some 29% of available inventory of government bonds The importance of this sector to this market and the wider
HQLA market for a number of years now, and whilst within lending programmes came from SWFs, with the liquidity questions that we are grappling with is clear.
acknowledging the challenges in securing high quality Our monitoring of the supply side of the government proportion rising to 32% of reported on-loan balances
data in this area, there is a clear and persistent core of bond lending market has helped us to better understand (see Figs 12 & 13).

Fig 11: European Securities Lending Government Bond Market – Cash Versus Non-Cash Fig 13: Global Government Bonds On-Loan - By Fund Type

€22B €300B
Banks/Broker Dealers 8%
Corporations/LLP/LLC 2%
On-Loan Balance vs Cash On-Loan Balance vs Non-Cash Government/Sovereign Entities/Central Banks 32%
Foundation/Endowment <1%

Insurance Companies 5%
Mutual/Retail Funds 14%

Pension Plans 28%
€0 €250B
Jul 2019 Aug 2019 Sep 2019 Oct 2019 Nov 2019 Dec 2019 Undisclosed/Other 10%
Source: IHS MArkit Source: DataLend

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