According to the announcement, i-BID ADVANTAGE is delivered via the company’s auction platform, i-BID. i-BID is used by the traders within BNY Mellon’s agent securities lending programme for the benefit of its participating clients. Through i-BID ADVANTAGE, BNY Mellon uses that capability to permit its clients operating direct lending programs to auction their securities directly to borrowers.
By utilizing BNY Mellon’s securities lending infrastructure and i-BID ADVANTAGE, institutions can discover how global borrowers assess the value of their assets against a range of collateral types, according to the firm.
BNY Mellon asserts that, in the post-credit crisis world, many larger, more sophisticated asset managers and institutional investors that lend their securities directly are seeking cutting edge techniques to enhance the way in which they lend their assets and manage the collateral received against those loans. Through the use of i-BID ADVANTAGE, BNY Mellon says it can assist those firms in achieving those goals.
Kathy Rulong, Global Head of Securities Lending at BNY Mellon, said: “i-BID ADVANTAGE is a natural evolution of our own securities lending capabilities. With i-BID ADVANTAGE, clients can now view live bids for their portfolios from borrowers around the world. This is especially attractive for those lenders who are moving to an intrinsic value approach, or who wish to enhance the value of their lendable assets via our class leading global collateral management (GCM) capabilities. This is particularly relevant when beneficial owners start to explore alternative forms of collateral as they search for optimal risk reward combinations.”