Winning bidders in the October 9 auction included:
- Barclays Capital
- Bear, Stearns Securities Corp.
- Credit Suisse First Boston
- Deutsche Bank Securities Inc.
- Lehman Brothers Inc.
The company used its Web-based eSecAuction. ESecLending said its auction platform:
- achieves market efficiencies and price discovery by incorporating a competitive bidding process and offering lendable securities in strategic combinations
- allows clients to achieve higher lending returns compared to traditional agency lending programs by utilizing exclusive principal relationships.
Securities lending involves institutional investors including pension funds and mutual funds lending securities to earn incremental income on their holdings.
According to eSecLending, the size of the securities lending market is estimated at between $1.5 trillion and $2 trillion worldwide.
The company said it will host additional securities lending auctions for CalPERS’ US and international equities in December.