The principle of securities lending is similar to that of repos. Securities lending enables a company with a large cash surplus or listed (see Listed security) investments to improve the Return on its financial instruments by entrusting them to Institutional investors. These Investors use them in the course of forward transactions while paying to the original owner (the company) the Income arising on the securities and a borrowing fee.

(See Chapter 47 Leveraged buyouts (LBOs) of the Vernimmen)

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