PBGC Looking for Securities Lending Partners
December 9, 2008 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) has issued a Request for
Information (RFI) to assess the viability of expanding its
securities lending program to qualified sources in the
commercial and public sector market.
The agency said it issued the RFI "to
determine if additional competing of the securities
lending business will benefit the PBGC." The agency
said it is seeking qualified companies that can enhance
its current activities and gain a better understanding of
costs and benefits associated with modifying and
potentially expanding the provider base of the
program.
The information may also form the basis of a PBGC
review and refinement of its securities lending program,
the RFI said.
The PBGC said it participates in a securities
lending program administered by its custodian bank
whereby the custodian bank lends PBGC's securities to
third parties. The custodian bank requires collateral
from the borrower that equals 102% to 105% of the
securities lent, and the collateral is held by the
custodian bank.
In addition, the RFI says some of PBGC's
investment managers are authorized to invest in
repurchase agreements and reverse repurchase agreements.
The manager either receives cash collateral or pays cash
out to be used as collateral, and any cash collateral
received is invested.
The RFI can be found on the Federal Business
Opportunities Web site
here
. Responses must be received by 10:00 a.m. EST on
December 22.
Rebecca Moore
editors@plansponsor.com