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Post by agedhippie on Oct 11, 2019 9:53:25 GMT -5
Rate paid at Fidelity dropped to 1.875% on Wednesday and 95% of my shares are NOT loaned out. I’m surprised since the last short interest report showed an increase of 1M shares. It more efficient for large shorts to borrow from brokers that hold a lot of shares in street name; it is better from the brokerage's standpoint to lend 100,000 shares at once from the street name pool than it is to lend 1,000 shares from each of 100 individual accounts because there is less paperwork to do (even if computers do most of the heavy lifting). Similarly, a lot of the discount brokers that offer "free trading" can do so because they have permission to loan out shares in exchange for "free" services they provide. The other group is the tracker funds (Vanguard, Blackrock, etc...) who are obliged to hold a lot of stock and will happily loan it out. The big advantage of borrowing from trackers is that between quarterly rebalancings there is zero chance of the shares being called back. |
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Post by boca1girl on Oct 11, 2019 16:39:39 GMT -5
Rate paid at Fidelity dropped to 1.875% on Wednesday and 95% of my shares are NOT loaned out. I’m surprised since the last short interest report showed an increase of 1M shares. It more efficient for large shorts to borrow from brokers that hold a lot of shares in street name; it is better from the brokerage's standpoint to lend 100,000 shares at once from the street name pool than it is to lend 1,000 shares from each of 100 individual accounts because there is less paperwork to do (even if computers do most of the heavy lifting). Similarly, a lot of the discount brokers that offer "free trading" can do so because they have permission to loan out shares in exchange for "free" services they provide. I understand that Matt, and Fidelity has told me the same. They loan and return shares to the accounts that have the biggest holdings to minimize the number of accounts impacted. I have a large number of shares and very few have gone back out on loan. |
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Post by boca1girl on Oct 22, 2019 6:10:48 GMT -5
Over the last couple of weeks, the interest paid has bounced +/- 1/4 point. It now stands at 1.875%. 95% of my shares still are NOT loaned out.
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Post by ryster505 on Oct 22, 2019 7:46:18 GMT -5
Over the last couple of weeks, the interest paid has bounced +/- 1/4 point. It now stands at 1.875%. 95% of my shares still are NOT loaned out. Just wait for the next pop. They will go out as soon as that happens. The one single time I agreed with Agedhippie was last night when I saw where he stated that shorts would rather see this jump again than to see the stock go down further. They are laying in wait. Unfortunately. |
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Post by mytakeonit on Oct 22, 2019 12:38:37 GMT -5
Looks like the "pop" is starting today. ... goes the weasel. This is kinda like playing "whack a mole".
But, that's mytakeonit
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Post by boca1girl on Nov 4, 2019 22:27:39 GMT -5
Fidelity now paying 1.75% and still only 5% of my shares are loaned out.
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Post by boca1girl on Nov 14, 2019 6:32:12 GMT -5
Loan rate paid dropped to 1.625% yesterday at Fidelity. Still only 5% of my shares are out on loan.
With the share price low and dropping, I would think demand from shorts would be strong. Maybe there are better opportunities for shorting.
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Post by liane on Nov 14, 2019 7:13:03 GMT -5
We can only hope.
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Post by boca1girl on Nov 14, 2019 10:18:35 GMT -5
Loan rate paid dropped to 1.625% yesterday at Fidelity. Still only 5% of my shares are out on loan. With the share price low and dropping, I would think demand from shorts would be strong. Maybe there are better opportunities for shorting. Update as of 10:17am: I just talked to Fidelity and was told there is no new demand for shares and there are millions of shares on the sideline available for loan. |
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Post by boca1girl on Nov 20, 2019 8:12:59 GMT -5
The few shares of mine that were out on loan were all returned yesterday. Rate still at 1.625%.
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Post by boca1girl on Jan 21, 2020 11:05:36 GMT -5
Surprise: some (5%) of my shares went out out loan this morning at 1.5%.
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Post by corvettez51 on Jan 21, 2020 11:18:08 GMT -5
Well assuming someone knew the stock price would jump this morning.
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Post by kc on Jan 21, 2020 13:09:38 GMT -5
I liked it better when the loan rate was 113% back in 2017.....
see page one of this thread... |
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Post by boca1girl on Jan 21, 2020 13:15:12 GMT -5
That wasn’t the rate earned by those who leant their shares, that was the rate paid by those who borrowed the shares. In those days We earned over 50% to loan shares.
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Post by awesomo on Jan 21, 2020 13:26:07 GMT -5
I remember the peak rate for Schwab was around 75% for the loaner.
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