What is your opinion on "Fully Paid Securities Lending"? Do you do it, is it worth of it?
What are the lending rates when using "Fully Paid Securities Lending" brokerage program? How much money I can get? What are the rate differences between commonly shorted "Hard to Borrow" securities and some stable stalwart tickers that almost never move? Is it even worth of considering? Perhaps certain types/positions in portfolio might make it more or less adequate?
Also, given that SIPC does not protect lent shares, the lender has to pay cash collateral instead. But if the collateral is around 102% then lets say they borrow shares worth of $1000 hoping they will drop to $100 but instead shares go to $10000. What are the chances that I will receive back my $10000 worth of shares instead of lender declaring bankruptcy and just paying me $1020 cash collateral instead(minus who-knows-what extra costs)?
And by the way, I'd like to hear some real stories instead of purely theoretical stuff is easily to find online.
Submitted February 11, 2023 at 08:24AM by Invpea https://ift.tt/R5tlOzw
