CalSTRS intends to award contracts to several firms to provide securities lending and cash collateral management services for its equity portfolio, spokesman Ricardo Duran said.
Firms selected to provide securities lending services are Credit Suisse Securities (USA), eSeclending Securities Finance Trust Co. and Goldman Sachs Bank USA.
Credit Suisse and Goldman Sachs currently provide securities lending services for CalSTRS, Mr. Duran said.
Firms selected to offer both securities lending and cash collateral management services are State Street Bank and Citibank. Mr. Duran said State Street current provides both services.
In addition, the $186.6 billion California State Teachers’ Retirement System, West Sacramento, will place Brown Brothers Harriman in a pool for securities lending services and Deutsche Bank AG in a pool for securities lending and cash collateral management services.
Mr. Duran said contracts will need to be negotiated with all the selected firms, a process that could take several months. He said those negotiations will also determine the length of the contracts.
All the firms selected responded to an RFP issued in August 2013. It was the first time CalSTRS had issued a request for proposal for the services in 13 years.