Agent Lending

Program Overview

At J.P. Morgan, we operate under a “clients first” approach that is supported by 10 guiding principles which we believe are inherent to a prudent agent lending program. These guiding principles include:

  • Highly Flexible Program Structures
    • Ability to design a agent lending program to meet client specific risk/return requirements along with the option to choose from┬ávarious lending platforms, to enact restrictions or set explicit program parameters
  • Well Defined and Transparent Cash Collateral Investment Guidelines
    • Investment guidelines that are clear, precise and approved by the client
    • Access to customized separate accounts for the investment of the cash collateral
  • High Touch Relationship Consulting
    • Dedicated agent lending professionals that utilize a consultative approach
    • Assess any new revenue opportunities and areas for improvement
    • Provide market color with respect to lendable securities supply and demand dynamics
  • Consistent and Frequent Communications
    • Present webinars, newsletters, and performance reviews
    • Provide on-going correspondence on issues impacting the agent lending industry
    • Offer insight and perspective with regard to industry trends and issues
  • Comprehensive Indemnification Packages
    • Covers borrower default, overnight market risk, fails on the return of loaned securities and entitlements to securities on loan all supported by a strong balance sheet and significant financial resources
  • Risk Controls and Segregation of Duties
    • Independent review of borrowers and cash collateral investments
    • Rigorous selection process that is conducted on a continuous basis
  • Access to Detailed and Flexible┬áReporting
    • Wide range of reporting and monitoring tools
    • Full customization capabilities
  • Program Transparency
    • Allow for complete understanding of the agent lending program’s philosophy, approach and processes
    • Ability to enter or exit the agent lending program upon request
  • Industry Standard agent lending Agreements
    • Agreed upon legal document covering all aspects of the client’s agent lending program
  • Commitment to Business
    • Consistent investment to expand and improve program structures, capabilities and increase market opportunities

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