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Post by kball on Mar 26, 2015 19:27:07 GMT -5
Just signed up for Fidelity's Fully Paid Lending. Had no idea until reading this forum. Thanks much to those folks participating and informing on this thread. Hard to count on a particular dollar amount as the share price and the interest rates seem to constantly be changing, but its nice to have some income from this investment for the time being. I got mine yesterday. The whole transfer to fidelity from wells fargo took 3 days and loaning another day. I feel like an idiot for being lazy and not signing up sooner. Even now I got only 1/2 of my position loaned. I'm looking into EYES. This is giving 30% rate at fidelity. Al Mann looks like a shorts magnet. As do i. I was only aware of this for about a month and most of my position has been added this month and last. But.... been a Fidelity customer since mid 80's so i feel rather uninformed, and even the branch asst manager was unaware of this. Go figure. |
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Post by Deleted on Mar 26, 2015 19:33:58 GMT -5
Does everyone on fideltiy have Bank of America providing your collateral? I get a chuckle out of that every morning.
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Post by gomnkd on Mar 26, 2015 19:52:22 GMT -5
Does everyone on fideltiy have Bank of America providing your collateral? I get a chuckle out of that every morning. Not sure what they used. I signed the forms for both BAC and WFC |
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Post by Deleted on Mar 26, 2015 20:05:08 GMT -5
Does everyone on fideltiy have Bank of America providing your collateral? I get a chuckle out of that every morning. Not sure what they used. I signed the forms for both BAC and WFC Should be on your daily collateral statement if they are being lent out |
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Post by brentie on Mar 26, 2015 21:03:07 GMT -5
Does everyone on fideltiy have Bank of America providing your collateral? I get a chuckle out of that every morning. Not me, I have Wells Fargo. |
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Post by kc on Mar 26, 2015 21:11:47 GMT -5
Yep. Every morning about 5:00 am I get my notice. My shares are at Bank of America. Does everyone on fideltiy have Bank of America providing your collateral? I get a chuckle out of that every morning. |
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Post by obamayoumama on Mar 26, 2015 22:16:29 GMT -5
Just signed up for Fidelity's Fully Paid Lending. Had no idea until reading this forum. Thanks much to those folks participating and informing on this thread. Hard to count on a particular dollar amount as the share price and the interest rates seem to constantly be changing, but its nice to have some income from this investment for the time being. I got mine yesterday. The whole transfer to fidelity from wells fargo took 3 days and loaning another day. I feel like an idiot for being lazy and not signing up sooner. Even now I got only 1/2 of my position loaned. I'm looking into EYES. This is giving 30% rate at fidelity. Al Mann looks like a shorts magnet. A friend deposited almost 400,000 shares at Fidelity and it was loaned out immediately. They are getting about $1,000 a day to park the shares there. |
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Post by kball on Mar 26, 2015 23:44:24 GMT -5
^
Sounds about right at 20%
They divide by 360.
I signed docs for BAC and Wells Fargo.
Again thanks to all the smart folks on this board.
btw...you do lose voting rights of the shares in this program according to docs i signed...as i think was discussed earlier in this thread with differences of whether that was true of not. It is for Fidelity
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Post by kball on Mar 27, 2015 10:43:00 GMT -5
They know how to cut a pretty sweet check to the people whose shares they are borrowing. Other than that, they don't have a crystal ball that works any better than the one we have.RE: the shorts...Arent they just playing a different game than the longs. Wanting to capture smaller price swings, while i'm holding for hopefully a 5-10 bagger 5 years out. |
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Post by petech on Mar 27, 2015 11:08:05 GMT -5
Could be...I don't know what their motivations are. Only thing I can be sure of is that some short is paying fidelity and then fidelity is giving me 2/3rds of that fee.  |
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Post by goyocafe on Mar 30, 2015 11:17:41 GMT -5
It seems a lot of people believe that the playing field is not level and slanted in favor of wall street players. If Fidelity is lending to hedge funds and Schwab isn't, I wonder if changes in the lending/borrowing landscape at Fidelity will be any better barometer as to how the hedge funds are looking at their short positions? Maybe a change in stance will be a precursor to something about to happen, and their actions with borrowing a lead in to the timing of that change.
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Post by chicagpete on Mar 30, 2015 11:23:45 GMT -5
Schwab dropped interest rate to 10percent this morning
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Post by Deleted on Mar 30, 2015 11:50:27 GMT -5
Fidelity still at 20
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Post by joeypotsandpans on Mar 30, 2015 15:37:02 GMT -5
You need to change brokers, would you pay .20 line when you can get .05 line? knowing you I'm in shock LOL!!  |
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Post by goyocafe on Mar 30, 2015 17:05:58 GMT -5
If the rationale for the high interest rate at Fidelity is the "hard to borrow" status, what happens when we all show up one day and ask for our shares back? Fidelity would have to go far and farther to find shares to replace what they've borrowed. I hope the 10% they're making by creating this liability will cover them on the day they have to give them all back. And no offense to all the great investors here, but I hope I'm first in line! |
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