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I have heard that but I'll settle it by calling my stock loan dept. and ask
them IF THEY BORROW FROM FUNDS...... and again.. it depends on the THE
PARTICULAR issue... KKD, AMZN ETC... NO SURPRISE.... MSFT INTC I HIGHLY
DOUBT.......
----- Original Message -----
From: "Kent Rollins" <kentr@xxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, October 07, 2001 4:07 AM
Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
> I believe I've heard (don't remember where and don't remember how reliable
> the source was) that broker's like Datek have contracts with large mutual
> funds like Janus, Fidelity, etc to borrow stock so the broker's customers
> can short it when needed.
>
> But getting back to the original point, I saw on CNBC's Street Signs, Ted
> David was getting some flak in his email that people were having trouble
> shorting. This was Wednesday or so. He brought it up in a conversation
> with Art Cashin. Cashin said that if Ted gave him some specific names, he
> would dig around on the floor and see if he could find out what the deal
> was, but they never got back to it that I saw.
>
> Kent
>
>
> ----- Original Message -----
> From: "Infernal Elk" <infernalelk@xxxxxxxxxxxxxxxx>
> To: <realtraders@xxxxxxxxxxxxxxx>
> Sent: Sunday, October 07, 2001 2:47 AM
> Subject: Re: [RT] VERY HEAVY BLK activity ON MSFT
>
>
>
> >> NW: No, they are loaning the stock so they can earn the stock loan
fees
> such
> >> as interest on the credit balance. This source of income often exceeds
> the
> >> commission end of the biz. Given the recent deep discounts on stock
> >> commissions, I am sure the stock loan fees and interest they rip off
> from
> >> the public is more important than ever as a source of income.
>
> <unlurk>
>
> having worked in back offices on & off in the past, i have to say that
> stock loan (equities) & repos ("fixed" income) can be a *substantial*
> source of financing at relatively little risk to a large firm,
> depending on the sophisication of the software systems that enable the
> stock loan or repo desks (stock loans are essentially equity "repos")
> to manage the huge volumes of stock in & out of the firm's box hourly.
>
> some of the stock loan desks i have seen rival some proprietary
> trading desks in number of personnel. and the stock loan folks are
> just as busy, sometimes busier!!!
>
> it's not as sexy as the proprietary side, but in bad years, the stock
> loan & repo desks subsidize the proprietary traders' bonus pools -- no
> joke! i've seen it happen often enough at bonus time. stock loan is
> steady money.
>
> - *lk
>
> <relurk>
>
>
>
>
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