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I was in the project working on the asset classes known as EF/PB, which is short for Equity Fiance / Primary brokerage, I understand that Equity finance is more or less about securities lending, and my manager told me that the product of the EF is repo.

I understand securities lending and repo conceptually, but there are some more details I'd like to hammer out:

  • As a dealer-broker, which is what my firm is, is it that we loan out the securities and hold collateral from the counter-parties, or the other way too? Normally how does the business flow and how the risk is assessed?

  • the word Loanet pops up once a while and I found online it only links to one firm, SunGuard. I take that it isn't a general term rather the product from SunGuard? Can anyone clarify/elaborate on it?

  • How about primary brokerage? I understand there are primary dealers who are prodigiously qualified to participate in Treasury&Fed's bond auctions. But when it's used in the context as an asset class, what does it mean and what're its products?

Sorry I should have thrown these questions at my boss but I am no long with the firm.

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  • $\begingroup$ In the third question, by primary brokerage do you mean en.wikipedia.org/wiki/Prime_brokerage ? $\endgroup$ – noob2 Jan 8 at 21:41
  • $\begingroup$ thanks @noob2 - yes, it looks this is the one. $\endgroup$ – J.E.Y Jan 10 at 4:44
  • $\begingroup$ 1st question: broker dealers both borrow and lend securities. 2d question: you are right that Loanet is a proprietary system for borrowing/lending securities that belongs to and is run by Sunguard. $\endgroup$ – noob2 Jan 10 at 11:44

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