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.
Have a question?
Ask our experts
With securities lending, as with other investment activities, your capital may be at risk.
Sharegain Ltd. is registered in England and Wales (no. 09600298) and is authorised and regulated by the Financial Conduct Authority (no. 730395).
*This website is directed exclusively at and intended to be used only by professional investors and retail investors with direct holdings in stocks, bonds and ETFs in excess of £500,000. Our website is not directed at any person or institution where (by reason of nationality, residence or otherwise) the availability of our website or securities lending in general is prohibited. The material on this website is for general information and should not be considered as investment advice or solicitation to be involved in securities lending or to use one of Sharegain’s services. Securities lending involves risks and we have not and will not assess whether our service is appropriate for you. If you decide to lend your securities, your capital may be at risk. Please consult professional advisors if you are in any doubt as to whether the service would be beneficial for you or whether you require any consent or need to observe any formalities, before deciding to engage in securities lending.
© Copyright 2018 Sharegain Ltd
+44 (0) 20 3884 2405 info@sharegain.com 9 Dallington St, London EC1V 0LN