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Post by MnkdMainer (MM) on Mar 24, 2016 6:58:26 GMT -5
Anyone see a predictive relationship between the two? Logic suggests there should be, but I have failed to detect a reliable pattern.
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Post by matt on Mar 24, 2016 7:36:25 GMT -5
Interest on borrowed shares is a reflection of demand for shares to short. Beyond that fact, I am not sure you can find a reliable pattern since neither the shorts nor the longs are always right. At most, rising borrow costs are a reflection of negative overall market sentiment but again that is only predictive if the market is always right, which it is not.
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Post by cretin11 on Mar 24, 2016 8:01:35 GMT -5
Somebody on this board (mnholdem maybe?) once charted the relationship between short interest and share price I think, but that's not what the OP is asking. It would seem predictable that number of shares short and short lending/borrowing rates would be closely tied together, but it doesn't appear to be the case. The other factor is the number of shares available to be lent for shorting, if that fluctuates a lot then it changes the interest rates too.
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Post by mnholdem on Mar 24, 2016 9:12:40 GMT -5
Wasn't me. 
I usually gloss over the short interest threads, since I have no interest (pardon the pun). |
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