Simple question.
I kind of wonder if in reality, if owning some "bad" companies may be worth it simply because of the money you make from loaning out heavily shorted stock as an institutional investor outweighs the money you think you may lose from owning a company.
As retail we don't really get this type of advantage, but if you are big enough you probably do.
I personally don't short much since most of my trading is in an IRA, but does it always follow that having a high % of float short means there will be hard to borrow fees?
Just to give a few examples .. what would institutions make on loaning these out, on an annualized basis?
How much would an institution make, annualized, loaning out:
(high) short float SHLD 22.22% TSLA 27% RIG 15% CMG 18% (medium) BBY 12% (low, but some interest) M 4.5%
Submitted February 01, 2017 at 09:37PM by Newbieloser http://ift.tt/2kjeXgz
