Program Structure

General Information

By policy, the program objective for the CalSTRS Securities Lending Program is to assist the Teachers’ Retirement Fund in meeting its investment goals by generating incremental income through collateralized, low-risk, short-term loans, using a portion of the lendable assets within the portfolio.

The program is:

  • Designed to provide a balance between risk control and diversification.
  • Based on two sources of income:
    • Lending terms.
    • Return generated from the management of cash taken as collateral for the loan.
  • Designed to take advantage of the benefits of both internal and external management in a prudent manner.
  Who’s Lending What? What Are Their Responsibilities?
Goldman Sachs Agency Lending (GSAL) Domestic Equities, International Equities Lending Agent / CalSTRS Cash Manager
Credit Suisse First Boston (CSFB)1 Fixed Income Lending Agent / CalSTRS Cash Manager
State Street Bank2 Domestic Equities, International Equities,
Fixed Income
Lending Agent / Cash Collateral Manager
1Credit Suisse made the decision to exit the securities lending space in July 2015. Their lendable assets were moved to State Street.
2State Street also lends as CalSTRS’ master custodian.

CalSTRS Lendable Assets by Participant

$117.86 Billion
December 31, 2015

CalSTRS Lendable Assets by Participant Pie Chart

CalSTRS has a strategy of using multiple lending agents and multiple asset managers in order to benefit from both diversification and competition.