tate Street Financing Solutions
Kevin MacNeill
30 September 2025
Kevin MacNeill, vice president in portfolio finance at State Street Financing Solutions, reviews the firm鈥檚 strategy in adapting to a changing market and how its integrated model delivers capital markets value for clients
Image: Kevin MacNeill
As the global securities financing market evolves, buy side institutions are navigating a complex mix of market volatility, regulatory reform, and liquidity challenges.
This year has seen unique themes of uncertainty as trade and central bank policies contributed to episodic volatility in equity and fixed income markets. Nevertheless, asset prices now stand near all-time highs while cash invested in money market funds (MMFs) has surged to unprecedented levels.
Meanwhile, forthcoming regulatory changes such as the Securities and Exchange Commission鈥檚 (SEC鈥檚) US Treasury clearing mandate to supplementary leverage ratio (SLR) reform are reshaping how sell side firms choose to extend their balance sheets. These changes have significant liquidity and cost implications for the buy side.
Navigate change with confidence
In this environment, buy side firms value trusted, long-term partners who can combine extensive experience with forward-looking innovation to deliver on business needs. State Street has been a consistent provider of financing, investment, and liquidity solutions through its holistic Financing Solutions product suite.
Its Agency Lending programme recently celebrated 50 years of generating alpha for clients via a network of over 140 borrowers globally. The programme鈥檚 ongoing enhancements focus on creating tailored solutions for clients while increasing the attractiveness of lendable assets to borrowers.
The Secured Financing programme launched the Sponsored Repo programme in 2005 in coordination with the Fixed Income Clearing Corporation (FICC) and now clears approximately US$500 billion in volume daily. The business provides flexible liquidity through both cleared and peer-to-peer (P2P) repo structures to clients globally. As regulatory mandates expand, the programme continues to invest in new execution and clearing models to support the expanded US Treasury clearing requirements and other European central clearing counterparty initiatives.
The Prime Services business offers an alternative prime brokerage model for financing long and short positions via bank financing. Within the platform, the innovative Direct Access P2P lending solution complements the core offering, expanding client flexibility.
Leverage cross-business integration
While each programme delivers strong standalone value, differentiated benefits emerge through cross-business synergies where State Street innovates to meet more sophisticated client needs. State Street offers deep and growing financing outlets with global client coverage and support models across businesses, from repo (cleared and uncleared/P2P) to physical lending and synthetics (coming in 2026).
A vast reserve of lendable assets through the Agency Lending programme provides supply to financing flows, while innovative solutions such as P2P and risk-weighted assets (RWA) transformation structures drive capital efficiency.
Prime and repo financing models operate cohesively to drive better financing outcomes for clients, including diverse equity and fixed income transformation structures. Unique fund financing leverage solutions are offered that incorporate State Street鈥檚 Agency Lending programme to generate alpha and reduce cost.
A growing solution set is unified through the State Street Financing Hub 鈥� gateway to the full suite of options where clients have a timely and holistic view of lending, financing, and collateral positions, as well as inventory and the decision support tools to efficiently allocate assets across those activities. This integrated view enhances transparency and enables more strategic asset deployment.
Connect to investment services and management
Beyond capital markets, Financing Solutions integrates with State Street鈥檚 well-established Investment Services (US$49 trillion in assets under custody) and Investment Management (US$5 trillion assets under management) businesses to unlock further value.
Custody clients can access incremental, diversified returns beyond servicing relationships via Agency Lending and short-term cash investments through Secured Financing, including repo sweep as a collateralised alternative to deposits. Additionally, clients benefit from Agency Lending鈥檚 use of State Street Investment Management for holistic client cash reinvestment to generate alpha.
Financing Solutions partners with State Street Investment Servicing to educate and develop solutions for broad client impact around regulatory reform, including the US Treasury clearing mandate. Secured Financing 鈥� in partnership with State Street more broadly 鈥� is a key participant in industry discourse to help shape, understand and comply with the mandate.
The result is a flexible, holistic set of Financing Solutions that builds on State Street鈥檚 servicing and management strengths. In a market defined by change, this integrated model delivers differentiated capital markets value for clients to thrive.
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