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Securities Lending

Interactive Brokers - Securities Lending Report 5/13/19 - 5/17/19


Sectors vs Short Positions

 

 

SLB Update: Largest Short Values

 

The following chart shows the 15 largest short values on May 16, 2019.

 

SLB Update: Highest to Borrow

The following chart shows the 15 highest borrow fees on May 16, 2019.

 

SLB Update: Hardest to Borrow


 

The following table shows the 15 hardest to borrow securities during the week of 5/13/19 – 5/17/19.

 

ETF Shorts vs Non-Shorts

 

 

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Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Securities Lending

Interactive Brokers - Securities Lending Report 5/7/19 - 5/13/19


Sectors vs Short Positions

 

 

SLB Update: Largest Short Values

The following chart shows the 15 largest short values on May 10, 2019.

 

SLB Update: Highest to Borrow

The following chart shows the 15 highest borrow fees on May 10, 2019.

 

SLB Update: Hardest to Borrow

The following table shows the 15 hardest to borrow securities during the week of 5/7/19 – 5/13/19

 

ETF Shorts vs Non-Shorts

 

 

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Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Securities Lending

Interactive Brokers - Landing on Your Feet


Catasys Inc. (NASDAQ: CATS) offers technology solutions for providing healthcare.  The Los Angeles-based company has a market capitalization of $290M with $15M in 2018 revenue.  In March, CATS filed for a mixed securities shelf of $50M.  While the rate stayed steady in the 7%-handle, street on-loan value increased by 50% and utilization was in the 90s.  The share price has increased since late April (from ~$12 to ~$18), after Catasys announced a partnership with Optima Health.  We have not seen evidence of short covering.  Borrow is available, but we are seeing locates only from retail brokers.

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Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Securities Lending

Interactive Brokers - Securities Lending Report 4/29/19 - 5/3/19


Sectors vs Short Positions

 

SLB Update: Largest Short Values

The following chart shows the 15 largest short values on May 2, 2019.

SLB Update: Highest to Borrow

The following chart shows the 15 highest borrow fees on May 2, 2019.

 

 

SLB Update: Hardest to Borrow

The following table shows the 15 hardest to borrow securities during the week of 4/29/19-5/3/19.

 

ETF Shorts vs Non-Shorts

 

 

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Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Securities Lending

Interactive Brokers - Shorts Do Some Heavy Lifting


LYFT Inc. (NASDAQ: LYFT) operates an app-based transportation business.  The San Francisco-based company has a market capitalization of $17B and over 4,000 employees.  Lyft’s IPO priced at the top end of its $70 - $72 range on March 28th.  That range was increased from a previous S1 filing range of $62 - $68 per share.  Generally, IPOs start trading the day after pricing around 11:00AM EST.  At 11:48AM on March 29th, Lyft opened at $87.24, reflecting increased demand for shares.  Over the day, the stock price meandered to a $78-handle, where it closed.  IPO allocations typically settle T+2 from Listing/First Trade Date.  This day is when the underwriter responsible for Billing & Delivery sends the physical shares via DTC to firms which received an IPO allocation.  Upon settlement, brokers can have availability either from rehypothecated margin shares or participating fully paid lending program stock.  The most popular hard-to-borrows may first be allocated to a firms’ own clients before showing to street counterparties. 

 

We have seen technology IPOs in particular be popular shorts, and Lyft is a good example.  On the April 2nd settlement date, we saw an inventory show from a prime broker offering at a borrow fee above 100%, which was in line with the market.  Along with short interest from IBKR’s own customers, we received inquiries from about a dozen different banks and brokers for borrow availability on April 2nd.  But over the next few days as shares trickled into the securities lending market, the borrow fee significantly eased to around 3%.  This is with street-wide shares-on-loan doubling between the beginning of April and today, as well as a surge in Utilization from a high starting point of 75% to over 90% right now.  Short Interest as % of the float is at 44%.  LYFT shares are trading at 16% below the offering price but we have not seen evidence of mass covering.

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Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment.

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.


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Disclosures

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The material (including articles and commentary) provided on IB Traders' Insight is offered for informational purposes only. The posted material is NOT a recommendation by Interactive Brokers (IB) that you or your clients should contract for the services of or invest with any of the independent advisors or hedge funds or others who may post on IB Traders' Insight or invest with any advisors or hedge funds. The advisors, hedge funds and other analysts who may post on IB Traders' Insight are independent of IB and IB does not make any representations or warranties concerning the past or future performance of these advisors, hedge funds and others or the accuracy of the information they provide. Interactive Brokers does not conduct a "suitability review" to make sure the trading of any advisor or hedge fund or other party is suitable for you.

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