Securities financing - Repos, securities lending & borrowing - Deep dive

This course is intended for anyone wishing to continue their learning beyond the foundation module and explore in greater depth the securities financing techniques employed by investment managers and financial market participants.

Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Let's demystify these!

In close collaboration with PwC's subject matter experts, PwC Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.

With this second module on securities financing, participants will further dive into the key concepts on repos and securities lending & borrowing and the attached strategies. Obtain a sound understanding of the risk and protection framework and reflect on the model of agent, principal and third party clients.

By the end of this training, participants will be able to:

• understand the core characteristics of repurchased agreements and securities lending & borrowing;
• gain a thorough understanding of their operational mechanisms;
• identify the optimal applications to mitigate risks or to generate additional returns on a pool of assets.

• 1) Refresher:
  • Key definitions and concepts - overview of repurchased agreements and securities lending & borrowing
  • Risk and protection framework
• 2) Operational models:
  • Model 1: agent - Pre-approved counterparts (lender with critical size)
  • Model 2: principal - Bank unique borrower (lenders with small-mid size)
  • Model 3: third party clients (external lending agent)
  • Open discussion on accounting, internal process and internal controls
  • Main differences between the three models

This training is coordinated by Laurent Dubois, Director at PwC Luxembourg.

The different modules will be presented by experts in derivatives.

Laurent Dubois is a director at PwC Luxembourg with over a decade of experience in the banking industry and several years in asset management on both product and corporate sides. Since joining PwC in 2008 within the audit practice, he has specialised in alternative investments, focusing on private debt structures and fund of funds. Laurent has worked closely with leading promoters and asset managers, gaining extensive knowledge of the asset management sector and its challenges. He holds the title of Réviseur d’entreprises agréé in Luxembourg and has contributed to projects for clients such as Ardian, Lombard Odier, Degroof Petercam, and BBH.