SGX Lending Programme

[memphisb]

To expensive to borrow and short!

I had also signed up as a lender for 2 year plus but none such transaction for lending took place till now. I believe based on forum posts previously, madam lark had hers borrowed.

[newborn1000]

Who will short in a bull run............seriously?

Maybe, in a bear market, you will see some activity..........it's still a toss up as to whether your shares are chosen......

[Jacmar]

If you are wondering why your shares seldom get borrowed, here is your answer:

No short-seller in his right mind would use the SGX SBL facility to borrow scrip. The borrowing cost is 10% per year! Even a CFD costs less and you can get leverage. Professional investors use prime brokers and the borrowing cost is usually less than 3%.

Only fools and rank amateurs would use the SBL to borrow scrip today.

well surprise, surprise. today I got a note from sgx that one of my stocks got borrowed after so many years of no such activity. yahoo! extra income for me. good luck to him/her as I am prepared to hold. the shortist is at work on those property counters.

[Musicwhiz]

OK interesting indeed! So someone is making a bet that property counters will crash (further).

So far my shares have not been lent out yet. Mine is also with SGX SBL program. After what d.o.g. said, I also think it's a very slim chance for mine to be borrowed. Haha.

[WolfT]

Hi all
What is the lending rate?
Is it fixed at 4%

[propertyinvestor]

Anyone with experience from the other side of the camp? The borrower? I'm guessing shortists only?

If you are wondering why your shares seldom get borrowed, here is your answer:

No short-seller in his right mind would use the SGX SBL facility to borrow scrip. The borrowing cost is 10% per year! Even a CFD costs less and you can get leverage. Professional investors use prime brokers and the borrowing cost is usually less than 3%.

Only fools and rank amateurs would use the SBL to borrow scrip today.

not true. Instituitional players are HUGE borrowers of scripts and their borrowing cost can be as low as 0.5%-3%. Its always retail investors who get the short end of the stick.

Even CFD providers have to borrow script every now and then to hedge positions.

[d.o.g.]

Anyone with experience from the other side of the camp? The borrower? I'm guessing shortists only?

If you are wondering why your shares seldom get borrowed, here is your answer:

No short-seller in his right mind would use the SGX SBL facility to borrow scrip. The borrowing cost is 10% per year! Even a CFD costs less and you can get leverage. Professional investors use prime brokers and the borrowing cost is usually less than 3%.

Only fools and rank amateurs would use the SBL to borrow scrip today.

not true. Instituitional players are HUGE borrowers of scripts and their borrowing cost can be as low as 0.5%-3%. Its always retail investors who get the short end of the stick.

Even CFD providers have to borrow script every now and then to hedge positions.

I already stated that professional investors borrow via prime brokers at 3% or less and not the SBL at 10%.

MF Global (RIP) used to borrow from Deutsche Bank to hedge its CFD exposure.

[corydorus]

For People who invest in Property as short/Mid term speculation, will it be silly to lend to allow others to short your own.
Price may not come back for a long while.

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I remember madam lark. She kind of disappear.

[CityFarmer]

OK interesting indeed! So someone is making a bet that property counters will crash (further).

So far my shares have not been lent out yet. Mine is also with SGX SBL program. After what d.o.g. said, I also think it's a very slim chance for mine to be borrowed. Haha.

I am also with SBL program. So far one of my holding been borrowed for probably 4-5 rounds already in the last 2 years. I agreed that it is slim chance since only one (1) been borrowed so far.

---

Hi all
What is the lending rate?
Is it fixed at 4%

The one stock been borrowed, it is charged 10% by broker, and i get 4% out of the 10%.

IIRC, there are different rate for different categories of stock, but most of them are in 10%/4% group.

[WolfT]

OK interesting indeed! So someone is making a bet that property counters will crash (further).

So far my shares have not been lent out yet. Mine is also with SGX SBL program. After what d.o.g. said, I also think it's a very slim chance for mine to be borrowed. Haha.

I am also with SBL program. So far one of my holding been borrowed for probably 4-5 rounds already in the last 2 years. I agreed that it is slim chance since only one (1) been borrowed so far.

---

Hi all
What is the lending rate?
Is it fixed at 4%

The one stock been borrowed, it is charged 10% by broker, and i get 4% out of the 10%.

IIRC, there are different rate for different categories of stock, but most of them are in 10%/4% group.

Tks for e info.
I believe those high volume traded stocks would have a higher chance of been borrow.