OT - Lending shares

I received an email from my broker (Fidelity) asking if I wanted to join their share lending program. I’m unfamiliar with this program and associated risks. The incentive to participate is that they will pay a variable interest on the value of lent shares. While loaned shares are not covered by SIPC, they provide full collateralization for the loan and Fidelity is the counterpart to the loan. I assume these lending programs primarily support short sales. I also assume that there’s not much difference from one broker to the next.

Would anyone with experience care to chime in on this subject. I know it’s way off topic, so let’s not create a long thread. Just a few words, good or bad from folks with experience. Thanks.


Have loaned shares multiple times at Schwab with no discernible negatives that I could find. At one point for a heavily shorted stock they were paying outrageous interest rates, IIRC, it was up above 50% on a yearly basis.


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