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.