Prior to Basel III and Dodd-Frank, broker-dealers were the world’s main supply of high quality liquid assets (HQLA). New regulations have forced broker-dealers to reduce drastically their inventories of these high quality collateral assets at a time when a flight to quality and safety has placed these assets in extremely high demand. This unintended consequence of regulatory reform has restricted supply, driven up the price of HQLA, and reduced global liquidity overall. Sovereign wealth funds, on the other hand, have been investing heavily in HQLA since the 1980s and 1990s, becoming one of the largest owners of these desirable assets, particularly G7 government bonds. The prolonged low interest rate environment has prompted many sovereign wealth funds to explore new ways to enhance yield. Among these yield enhancement methods is securities lending. Given their ample inventories of HQLA, securities lending by sovereign wealth funds has the potential to ease, if not cure, the world’s liquidity woes.