abitofvalue Posted February 6, 2015 Share Posted February 6, 2015 The one time I know off was post Lehman. A bunch of institutions lost money / securities due mismanagement of the custodial funds by the custodial banks. Not sure that situation would apply here but securities lending isn't risk free returns. Certainly Lehman counterparties lost money on CDS and other securities. Do you have a source discussing lent stock specifically? No source readily available. but google Wells Fargo / BNY Mellon or one of the big custodial banks and securities lending lawsuit. Should see a few. Like I said, not sure its an apples to oranges comparison since the issue the OP is worried about is the short-seller blowing up. What happened here was the custodial bank invested the money recd from sec lending in mbs / lehman commercial paper etc. So its more custodial risk than short blowing up risk. Was just pointing out that Sec Lending isn't risk-free. Link to comment Share on other sites More sharing options...
arbcon Posted February 6, 2015 Share Posted February 6, 2015 Always a custodian risk in securities lending. The problems with Lehman came out of their London office as I recall, and yes,securities were tied up for a year if I remember correctly. Link to comment Share on other sites More sharing options...
Mephistopheles Posted February 7, 2015 Share Posted February 7, 2015 Don't brokers/custodians lend your securities anyway, whether or not you get paid? I know that for interactive brokers you take part of the cut, but for your average retail broker, I was under the impression that it can happen either way. Link to comment Share on other sites More sharing options...
merkhet Posted February 7, 2015 Share Posted February 7, 2015 Don't brokers/custodians lend your securities anyway, whether or not you get paid? I know that for interactive brokers you take part of the cut, but for your average retail broker, I was under the impression that it can happen either way. Only if you are in a margin account. Link to comment Share on other sites More sharing options...
20ppy Posted February 7, 2015 Share Posted February 7, 2015 Some concerns at the bottom of the link regarding securities lending: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=117477 I lent out my shld shares last year and I am paying heavy tax on the income. It is still unclear to me whether I can actually lose my shares if some dumb shorts blow up. Link to comment Share on other sites More sharing options...
Mephistopheles Posted February 7, 2015 Share Posted February 7, 2015 Don't brokers/custodians lend your securities anyway, whether or not you get paid? I know that for interactive brokers you take part of the cut, but for your average retail broker, I was under the impression that it can happen either way. Only if you are in a margin account. Thanks. Why is that only for margin, and not for cash accounts? I do have a margin account. Does this mean my shares in whatever I own have counterparty risk (however small that may be) in securities lending? Link to comment Share on other sites More sharing options...
merkhet Posted February 7, 2015 Share Posted February 7, 2015 Usually, they include their right to lend out the securities when you sign up for a margin account. In a normal account, there's usually not such a term. Link to comment Share on other sites More sharing options...
Mephistopheles Posted February 8, 2015 Share Posted February 8, 2015 Makes sense, thanks merkhet. Link to comment Share on other sites More sharing options...
Luke 532 Posted February 8, 2015 Share Posted February 8, 2015 Lots of Facebook "likes" for what it's worth: You'll Never Believe Which Department Store Dominated Facebook During The Holidays (Hint: It Wasn't Macy's) http://www.fool.com/investing/general/2015/02/08/youll-never-believe-which-department-store-dominat.aspx Link to comment Share on other sites More sharing options...
Luke 532 Posted February 9, 2015 Share Posted February 9, 2015 Sears plans new Seattle engineering office, hires ex-Amazon execs for big home-services tech push http://www.geekwire.com/2015/sears-plans-new-seattle-engineering-office-hires-ex-amazon-execs-big-home-services-tech-push/ Link to comment Share on other sites More sharing options...
arbcon Posted February 9, 2015 Share Posted February 9, 2015 constructive. I was aware of people whose stock loans were tied up, yes as part of the cds problem, but they didn't have cds exposure themselves. as I understand it, everything was tied up due to the cds problem. Link to comment Share on other sites More sharing options...
valuestudent Posted February 10, 2015 Share Posted February 10, 2015 Does anyone have access to this study? I was just wondering how the numbers were calculated. For example, did they account for positive vs negative comments? If you go on to facebook, there is a large number of negative comments in relationship to Sears. It is hard to determine what % of all comments are negative compared to other brands. So the gross number of comments (if that is what they are using) maybe misleading. Any more information on this report would be helpful. Thanks. Lots of Facebook "likes" for what it's worth: You'll Never Believe Which Department Store Dominated Facebook During The Holidays (Hint: It Wasn't Macy's) http://www.fool.com/investing/general/2015/02/08/youll-never-believe-which-department-store-dominat.aspx Link to comment Share on other sites More sharing options...
BTShine Posted February 10, 2015 Share Posted February 10, 2015 One positive article on Sears and its comeback attempt. http://www.retaildive.com/news/can-sears-make-a-comeback/361658/#.VNlTQxAs7co.twitter Link to comment Share on other sites More sharing options...
wisdom Posted February 10, 2015 Share Posted February 10, 2015 Good article about Prime: http://www.wired.com/2015/02/amazon-prime-one-bizarre-good-business-ideas-ever/?mbid=synd_yahootech Link to comment Share on other sites More sharing options...
Against the crowd Posted February 11, 2015 Share Posted February 11, 2015 Sears poaching employees from Amazon who were some of the early employees to work with Amazon Fresh. Interestingly this team will be based in Seattle near Amazon's office and will be working on Sears Home Services business as per one news article. http://investcorrectly.com/20150210/sears-holdings-corp-shld-poaching-employees-setting-amazon-com-inc-amzns-territory/ It is very interesting for me as an investor to see that Sears continues to attract talent from high quality companies like Amazon. I hope they can retain this talent over a period of time rather than loosing them in a few qtrs. This place has been a revolving door for some time now. Link to comment Share on other sites More sharing options...
Luke 532 Posted February 13, 2015 Share Posted February 13, 2015 Some concerns at the bottom of the link regarding securities lending: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=117477 The concerns discussed at the bottom of that link involve dividend-paying stocks in the Stock Yield Enhancement Program (SYEP). To avoid this problem, one can simply open another account at IB and transfer the dividend-paying stocks to that account so they aren't included in SYEP. Link to comment Share on other sites More sharing options...
wisdom Posted February 13, 2015 Share Posted February 13, 2015 Why is SHLD up 5% Link to comment Share on other sites More sharing options...
Luke 532 Posted February 13, 2015 Share Posted February 13, 2015 Why is SHLD up 5% Because optimism from buyers is stronger today than the pessimism from sellers, and the buyers are being more aggressive. ;) Really though, probably a mention of it at the Harbor Investment Conference or something like that. Edit: the conference was held yesterday so who knows, probably just Chapter 8 of The Intelligent Investor playing out like it so often does. Link to comment Share on other sites More sharing options...
Against the crowd Posted February 17, 2015 Share Posted February 17, 2015 The optimism of buyers is again very strong today. Is it a start of an uptrend. Not sure if there is any data point out there which makes an assumption of their comp sales for Q4.....We have not seen SHLD put out any press release on comp store sales yet while everybody in the industry has done so..... Link to comment Share on other sites More sharing options...
ni-co Posted February 17, 2015 Share Posted February 17, 2015 I think people speculate not only on the comps but also on how the bridge loan is going to be replaced by the end of February. Link to comment Share on other sites More sharing options...
CorpRaider Posted February 19, 2015 Share Posted February 19, 2015 You guys probably already saw this, but just in case: http://www.bloomberg.com/news/articles/2015-02-19/sears-turnaround-seen-failing-by-traders-in-credit-swaps-market Link to comment Share on other sites More sharing options...
focusinvestor Posted February 19, 2015 Share Posted February 19, 2015 You guys probably already saw this, but just in case: http://www.bloomberg.com/news/articles/2015-02-19/sears-turnaround-seen-failing-by-traders-in-credit-swaps-market The Institutional investors roster for 12/31 had some interesting new developments: - Baker Street is completely out - Fine trimmed their position by nearly 30% - Force added significantly to their position (and has done this in year's past as well) - TOBAM added significantly to their position Link to comment Share on other sites More sharing options...
Luke 532 Posted February 19, 2015 Share Posted February 19, 2015 Month Shares % Change Feb-10 14,951,639 May-10 14,714,071 -1.6% Aug-10 14,037,171 -4.6% Nov-10 14,661,671 4.4% Feb-11 14,917,873 1.7% May-11 16,313,973 9.4% Aug-11 16,380,680 0.4% Nov-11 16,270,692 -0.7% Feb-12 16,108,492 -1.0% May-12 16,813,480 4.4% Aug-12 16,829,880 0.1% Nov-12 16,934,080 0.6% Feb-13 18,146,573 7.2% May-13 19,508,773 7.5% Aug-13 20,393,000 4.5% Nov-13 20,758,000 1.8% Feb-14 24,226,073 16.7% May-14 24,502,323 1.1% Aug-14: 24,672,823 0.7% Nov-14: 25,506,273 3.4% Feb-15: 26,545,273 + 6,413,656 warrants (32,958,929 total) 29.2% If you include the addition of warrants on top of Berkowitz’s increasing common stock ownership, he increased his position 29.2% from Q3 2014 to Q4 2014. Francis Chou increased his position 11.5% from Q3 ’14 to Q4 ’14 (803,526 to 896,088). The Institutional investors roster for 12/31 had some interesting new developments: - Fine trimmed their position by nearly 30% Fine did decrease her position but she replaced a large portion of the common stock she sold with warrants. 3,116,000 common shares in Q3 ’14 compared to 2,217,000 common and 669,000 warrants (2,886,000 total) in Q4 ’14. Decline of 7.4%. Link to comment Share on other sites More sharing options...
ni-co Posted February 19, 2015 Share Posted February 19, 2015 You guys probably already saw this, but just in case: http://www.bloomberg.com/news/articles/2015-02-19/sears-turnaround-seen-failing-by-traders-in-credit-swaps-market This is just a clever way to go short SHLD – so nothing new there. The Institutional investors roster for 12/31 had some interesting new developments: - Fine trimmed their position by nearly 30% Fine did decrease her position but she replaced a large portion of the common stock she sold with warrants. 3,116,000 common shares in Q3 ’14 compared to 2,217,000 common and 669,000 warrants (2,886,000 total) in Q4 ’14. Decline of 7.4%. I wonder why you'd want to switch cheap equity for very expensive warrants – if you're a value investor anyway. Link to comment Share on other sites More sharing options...
Luke 532 Posted February 19, 2015 Share Posted February 19, 2015 Fine did decrease her position but she replaced a large portion of the common stock she sold with warrants. 3,116,000 common shares in Q3 ’14 compared to 2,217,000 common and 669,000 warrants (2,886,000 total) in Q4 ’14. Decline of 7.4%. I wonder why you'd want to switch cheap equity for very expensive warrants – if you're a value investor anyway. Yeah, it's odd. Link to comment Share on other sites More sharing options...
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