Securities lending indemnification - Financial definition
Financial acronyms
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Concise definition of the term securities lending indemnification
Indemnification is an insurance policy offered by a lending agent which protects securities lenders against borrower credit risk.
Comprehensive definition of the term securities lending indemnification
In the event of a counterparty default, the agent would first use the available collateral and, if that were insufficient, would use its own capital to repurchase the client’s securities or return an equivalent amount of cash to their account.