Evolution of Insourcing: Understanding the Different Models

GPFA Board Members Chris Benish (SWIB), Rob Goobie (HOOPP), Mike Johnson (CalPERS), and Jerry May (OPERS) sit down to celebrate the association's fifth anniversary and reflect on its evolution from buy side conference conversations into a volunteer led, global not for profit. They discuss GPFA's expansion from a focus on securities lending to a broader securities financing mindset, supported by cross disciplinary working groups that drive its initiatives. With more than 40 global members representing over $11T in assets, they look forward to what the next five years will bring.

Chris Benish is joined by Brock Bell from the Virginia Retirement System (VRS) to discuss VRS's asset allocation and their unique approach to leveraging. The conversation delves into various financing and liquidity management strategies, the rationale behind VRS's use of leverage, and the importance of diverse asset programs. They also cover swap capabilities, the necessary legal agreements for trading, and governance considerations.

GPFA's Private Credit discussion group is sharing their introduction session, which featured Jason Pearlstein from HOOPP, Lisa Mantello and Elizabeth Mpermperacis from Osler, Hoskin & Harcourt LLP, and Kristian Altier, from CalSTRS. The panel explored the basics of Private Credit and why it's growing in popularity.

Ahead of the ISLA Annual Securities Finance & Collateral Management Conference, Keren Halperin, Deputy CEO and Chief of Staff at Sharegain, joins Matt Brunette, Global Head of Financing at Norges Bank Investment Management, and Brooke Gillman for a deep dive into the evolving world of retail securities lending. As accessibility continues to expand and adoption grows, their conversation explores key lessons for lenders, the latest developments shaping the space, and the crucial role of technology and education in driving progress.

As the ISLA Annual Securities Finance & Collateral Management Conference approaches, Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, joins Matt Brunette, Global Head of Financing at Norges Bank Investment Management, and Brooke Gillman for an insightful discussion on digital assets. Together, they examine the strategic impact of digital assets within securities finance, their potential benefits for beneficial owners and the broader market, and their transformative role in enhancing financing efficiency.

As ISLA has partnered with GPFA to engage more beneficial owners, Matt Brunette of Norges Bank Investment Management and active GPFA member is joined by Ina Budh-Raja of Bank of New York Mellon and Chair of the ISLA Board of Directors, and Andy Dyson, CEO of ISLA, to discuss the upcoming 2024 ISLA Conference. They talk about the panels they're most looking forward to and the positive impact when various players in the value chain gather to look to the future, discuss common challenges and create solutions together.

Chris Benish is joined by Mary Jane Schuessler, Managing Director at BMO Capital Markets and President of the CASLA board, to discuss the upcoming 2024 CASLA Conference, the history and evolution of the association, agenda items to look forward to and some advice for those visiting Toronto.

Matt Brunette of Norges Bank, Jerry May of OPERS and Michael Stamm of SWIB join Brooke Gillman to discuss the reasons each approach insourcing securities finance in different ways, from hybrid trading, to control over cash management, to owning risk or to managed agent models. No matter the route, each beneficial owner has evolved to meet their organization's needs while understanding their relative skill sets, resources, and operational capacities.

Chris Benish speaks with some of the newest GPFA members, Brian Yeazel and Kris Breitzman of Northwestern Mutual, about their approach to securities lending, repo, and cash collateral reinvestment and finds out what drove them to join GPFA.

Following the first GPFA podcast on indemnification, Matt Brunette from NBIM, Chris Benish from SWIB and Jerry May from OPERS continue the conversation comparing their views on how the cost of indemnification may impact the global beneficial owner community as well as the broader market. Read Mark Faulkner's paper here: http://globalpeerfinancingassociation.org/s/Something-Better-Change-13622-Credit-Benchmark.pdf