Frequently Asked Questions
What kind of return can I expect?
You can expect positive returns that entirely depend on the value of your holdings, and their respective lending rates.
The more widely available stocks produce lower returns, up to 0.5% (50 bps) annually. They are categorised as ‘general collateral’.
Hot stocks, categorised as ‘specials’, command much higher returns varying from 1.0% (100 bps) to over 100% (10,000 bps) annually in more extreme cases.
In short, lending rates are dynamic and are driven by many factors that affect the availability of lendable supply vs the demand to borrow certain securities. So, something that has no demand today can become super-hot tomorrow, and vice versa.
More about securities lending
Have more questions?
What kind of return can I expect?
You can expect positive returns that entirely depend on the value of your holdings, and their respective lending rates.
The more widely available stocks produce lower returns, up to 0.5% (50 bps) annually. They are categorised as ‘general collateral’.
Hot stocks, categorised as ‘specials’, command much higher returns varying from 1.0% (100 bps) to over 100% (10,000 bps) annually in more extreme cases.
In short, lending rates are dynamic and are driven by many factors that affect the availability of lendable supply vs the demand to borrow certain securities. So, something that has no demand today can become super-hot tomorrow, and vice versa.
