From the Securities Lending Trading Desk

In the US, an impending $134 million dollar debt payment due on Monday has made Sears’ bankruptcy all but certain. In Asia, FamilyMart UNY Holdings said it would acquire a 20% stake in Don Quijote Holdings in a deal that could be valued at as much as 212 billion yen ($1.9 billion). In Europe, Reports that funds were looking to increase short positions in Ceconomy have increased borrower demand this week

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From the Securities Lending Trading Desk

In the US, Sirius XM Holdings Inc.(SIRI) agreed to buy online music service Pandora Media Inc. for $3.5 billion in an all-stock deal, creating the world’s largest audio-entertainment company. A Bloomberg Businessweek report alleged that Chinese spies exploited vulnerabilities in the U.S. technology supply chain to infiltrate networks in almost 30 U.S. companies, including Amazon and Apple, a major bank and government contractor. In Europe, Aston Martin Lagonda (AML OM) marked its return to listing on the London Stock Exchange with the second-worst first day stock move in Europe this year following launch on Wednesday after shares fell as much as 5%.

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From the Securities Lending Trading Desk

In the US, Geron Corporation’s stock price plummeted as much as 76% last week following news that Johnson and Johnson would end its partnership with the clinical stage biopharmaceutical company. Genscript Biotech Corp crashed 47% when the report was released before rising 18% after the company denied the accusations. In Europe, H&M, a long term popular borrow name, continued to prove popular this week as CEO Karl-Johan Persson made positive remarks on the near-term business prospects of the fashion retailer.

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From the Securities Lending Trading Desk

In the US, amid a heavy focus on technology and semiconductor sectors, we have seen an uptick in fundamental interest for connected chip maker, Impinj, Inc. (PI). As dark clouds continue to gather over brick-and-mortar retailers, one of Australia’s leading firms in the sector has seen some signs of improvement as it shifts its strategy towards online sales. In Europe, H&M, a long term popular borrow name, opened up 19% this week, the most in 17 years following unexpected sales growth and reports that owners are exploring privatization.

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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”