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Could you explain who would "loan" these hedge funds shorts at these elevates levels? Or is that not how it works.
by milofeynman 6y ago
Could you explain who would "loan" these hedge funds shorts at these elevates levels? Or is that not how it works.
- koolba 6y agoAnyone who has the stock. The loans are usually collateralized at 100+% and marked to market daily. For stocks this crazy the interest rates on the loans would be equally insane. So any large institutions (ex: pension funds) holding the stock are making bank lending it out.