FAB and Manufactured dividend: Difference between pages
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(Difference between pages)
imported>Doug Williamson (Create page. Source: The Treasurer, Feb 2018, p30.) |
imported>Doug Williamson (Create page. Source: UK Money Markets Code April 2017: http://www.bankofengland.co.uk/markets/Documents/money/code/ukmoneymarketscode.pdf) |
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''Securities lending and Repurchase agreements'' | |||
A manufactured payment of dividends normally arises when a securities lending or repurchase agreement (repo) crosses a dividend date. | |||
==See also== | As a consequence, the stock lender will not receive the (real) dividend to which it would have been entitled, had it not lent the securities. | ||
*[[ | |||
*[[ | |||
*[[ | In this situation, the stock borrower or repo counterparty may be required to pay a 'manufactured' dividend amount to the lender, as compensation for not receiving the real dividend. | ||
== See also == | |||
* [[All-in dividend]] | |||
* [[Bond]] | |||
* [[Collateral]] | |||
* [[Dividend]] | |||
* [[Repurchase agreement]] | |||
* [[Security]] | |||
* [[Securities lending]] | |||
* [[Share]] | |||
* [[UK Money Markets Code]] | |||
Revision as of 17:27, 25 June 2017
Securities lending and Repurchase agreements
A manufactured payment of dividends normally arises when a securities lending or repurchase agreement (repo) crosses a dividend date.
As a consequence, the stock lender will not receive the (real) dividend to which it would have been entitled, had it not lent the securities.
In this situation, the stock borrower or repo counterparty may be required to pay a 'manufactured' dividend amount to the lender, as compensation for not receiving the real dividend.
