Last week I mentioned that my UPST shares had not been loaned out. Well, this morning ALL of my shares were loaned out at a rate of 23.375%! Shorts are increasing as indicated by the increasing interest rate (some reported a 19% interest rate last week). Higher interest rate indicates that the shares are getting more difficult to borrow.
GR
Isn’t this all OT? This doesn’t relate to UPST as a business. I don’t believe this board in general is worried about short sellers because we invest in businesses, we are not short-term traders seeking quick profits.
At the risk of going further out of bounds…
(but since the thread heavy weights have chimed in, including Saul, I thought there may be interest)
I didn’t know all the in and outs of shares being borrowed to loan to shorters, so I asked my broker (Schwab)… here’s what they told me;
First, shares can only be borrowed if they are held in a margin account.
Then they can only be borrowed if there is a debit balance in the margin account.
They said they will borrow shares even if there is a covered call written against them, and
They will borrow shares even if you have a sell order outstanding on the shares.
I was just curious, thoughts maybe others would be as well.
We have run this thread into the ground. Let’s stop it here.
Thanks for your cooperation,
Saul