From the Securities Lending Trading Desk

In the US, we have seen increased demand for DocuSign, Inc., as the share price continues its downward trend. Japanese real estate brokerage and management service firm Tateru Inc. has become embroiled in a falsification of data scandal, sending its share price into a tailspin. Rights issuance and convertible bond activity have been key drivers for securities lending demand in Europe. Continue reading “From the Securities Lending Trading Desk”

Three takeaways for asset managers from the European Beneficial Owners’ Securities Finance & Collateral Management Conference

Overall the market has had a good year with equity lending revenues returning a healthy 17% YoY increase and fixed income 7%. Asia is the hot spot with revenues increasing by 40%, and the US and EMEA 2% and 23% respectively1

Revenues are concentrated, with a few key specials generating a high proportion of revenue in each market. Familiar names like Tesla, Celltrion and Sharp have featured again. 

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From the Securities Lending Trading Desk

In the US, overall analyst estimates have been trending lower on Hi-Crush Partners LP (HCLP) after the huge share price rally in late July. Earlier this month, the Nikkei newspaper reported that Tateru falsified documents when applying for loans at a local bank and made the accounts appear to be larger than they actually were. The reported deal between Hurricane Energy and Spirit Energy strengthens plans associated with the drilling of new wells west of the Shetland islands following a recent wave of activity in the North Sea region.

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From the Securities Lending Trading Desk

In the US, Ubiquiti Networks remains one of our top lending names as it met consensus estimates for EPS after posting strong earnings last week. Two of Australia’s largest telecommunications firms, Vodafone Hutchison Australia and TPG Telecom, have agreed to merge together to create the nation’s third largest group in the sector. Securities lending demand has remained robust in Europe for Hennes and Mauritz as weak third quarter results were posted.

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From the Securities Lending Trading Desk

Bearish sentiment is growing in the US as Diebold Nixdorf Inc. struggles to avoid a liquidity crisis. Shares in car manufacturer BYD Co. surged in Hong Kong trading due to strong sales momentum in the Chinese electronic vehicle market. European equity outlook concerns drive an increase in securities lending demand, with Nyrster slumping up to 22%, the highest intraday drop in 2 and a half years. Continue reading “From the Securities Lending Trading Desk”

From the Securities Lending Trading Desk

In the US, Dropbox recently reported revenue and earnings that beat market estimates but the lack of profitability and fear of the rising level of competition from the likes of Alphabet and Microsoft had shareholders reacting negatively. Chinese education stocks slumped sharply in Hong Kong trading last week on uncertainty of future government policies towards the sector. In the UK, Chemring (CHG LN) lost 23% of its share price as the defense equipment maker warned that an explosion at one of its factories in Salisbury could hit profits by up to £20M.

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From the Securities Lending Trading Desk

US high yield bond total returns have seen their best results as of late, causing easing in short demand. China Evergrande Group, China’s second largest real estate developer surprised investors last week with better than expected positive earnings guidance. In Europe, Pandora issued a profit warning which sent shares in the jewelry-maker lower.

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From the Securities Lending Trading Desk

As China/US tariffs remain in focus, we continue to see strong demand for several Chinese ADS/ADRs. London-based lender, Standard Chartered Plc., reported operating income of $7.63 billion, which exceeded analyst estimates. Tough times continue for UK housing and retail sectors this week.

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From the Securities Lending Trading Desk

US based Biopharmaceutical firm MiMedx remains a target of short sellers as the share price remains under pressure. One of Australia’s largest and iconic media brands has announced plans to buy out one of the nation’s largest newspaper firms. In Europe, BillerudKorsnas falls as forest fires in Sweden adds to cost pressures.

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