Frost has unique advantages in the area of Securities Lending because of our long history and conservative culture. And the senior members of the Frost Securities Lending group have been together running successful programs for several decades and at Frost for 10 years.
At Frost, we seek low-risk, incremental returns for our clients, and offer:
We don’t internally manage the cash received from brokers or the tri-party pledge positions for non-cash transactions. So we don’t succumb to the internal pressures other firms experience for higher and higher returns.
At Frost, we don’t invest collateral in exotic investments that are subject to wild swings in value or becoming illiquid when markets move. Our customers know exactly how collateral is invested.
AN UNDERSTANDING OF THE PUBLIC CLIENT
Over the years, securities lending has been embraced as an important tool for the public portfolio. We understand that to the public entity, “return of” is as important as “return on.”
NO LEVERAGING OR MISMATCHING
Frost doesn’t make bets with collateral investments. All collateral is kept short, with no mismatching of maturities. Instead, we use the proven combination of quality money market mutual funds, overnight pledged positions, and short term loans.
A SMALLER PROGRAM
Securities lending is one service where smaller is better. With a smaller, but well capitalized organization, broker relationships are stronger and demand is much better for clients. Because we use a small number of brokers/borrowers with whom we have developed solid relationships, if any issues arise, we can maneuver more quickly and act more nimbly than the larger agent banks.