Which of the following types of securities are not traditionally lent?

Municipal bonds are often not traditionally lent for several reasons. Primarily, they are issued by local governments or municipalities to finance public projects and are typically considered to be less liquid than other types of bonds, like U.S. Treasury bonds or corporate bonds. Lenders may find that the local nature and specific tax implications of municipal bonds make them less attractive for short-term lending or borrowing purposes.

Additionally, the market for municipal bonds can be less vibrant compared to more widely traded securities, thus making it challenging to easily lend them. While U.S. Treasury bonds, sovereign bonds, and corporate bonds are frequently part of lending arrangements due to their higher liquidity and wider acceptance in financial markets, municipal bonds tend to remain in the portfolios of long-term investors who seek tax-free income, leading to lesser instances of them being lent out. This difference in market behavior around municipal bonds underpins the reason they are typically not lent in the same way as other classes of securities.