Lending Program Structures
J.P. Morgan provides Agent Lending services to both custody and non-custody (i.e., third-party) clients. By leveraging its broad global array of businesses and servicing capabilities, J.P. Morgan offers its clients a full-service lending platform that offers a comprehensive range of lending program options including:
- Discretionary – J.P. Morgan is utilized as an agent lender and is responsible for facilitating and negotiating loan transactions, evaluating borrower credit risk, providing collateral monitoring and/or reinvestment, on-going loan maintenance and recordkeeping.
- Directed – Clients operate their own program using J.P. Morgan as a custodian to facilitate loans and/or cash transactions.
- Auctions and Exclusives –J.P. Morgan will conduct an auction and/or facilitate an arrangement whereby, for a pre-determined fee or price, a client agrees to make available for borrowing on an exclusive basis, its portfolio or a portion of it to a specific borrower.
- Principal – Utilizing an exclusive arrangement with J.P. Morgan Securities, a client is able to lend their securities exclusively to J.P. Morgan for a pre-determined rate and period of time.
- Non-Custody – J.P. Morgan will act as the clients’ agent lender in a discretionary and/or exclusive program regardless of where the clients’ underlying assets are held in custody.