The sec lending contract marks the fourth consecutive year CSFB has been awarded such deal by the $161 billion public pension fund. This agreement provides the equities tied to the contract for 26 months, according to a news release.
CalPERS arranged the deal through an auction conducted by eSecLending, which allowed the nation’s largest pension fund to match its equity positions with interested borrowers. As is the nature of these deals, CSFB will use the assets to provide liquidity in the market in exchange for premium returns paid to the pension fund.
“CSFB aims to create value for both our institutional investor and hedge fund clients. In prime brokerage it is essential to maintain a stable supply of available assets for hedge funds’ borrowing needs,” Philip Vasan, Managing Director of CSFB and the Global Head of CSFB Prime Services said in a news release. “The portfolios awarded by CalPERS to CSFB are a valued part of our offering. At the same time this gives us an opportunity to add value for CalPERS, and to build further on the strong relationship between our institutions.”