Can someone explain that to me :(
When you use a bond as collateral for a bank loan that is not "lending a bond".
Lending a bond is just that - "here you can borrow this bond, please return". Bond lending is done for the same reason that equities lending is down - to establish a short position in the bond or settle an existing short. In the past it was also an important part of credit default swap settlement, though that has largely changed with CDS not being settled physically.
It may be the only asset A has. The bond would be lent to B as collateral for a bank loan, for example.
I am wondering about Bond lending ,and what the benefit For B IF " A lending a bond to B " and why B doing that ?
Can someone explain that to me :(
