From the Securities Lending Trading Desk

In the US, one industry expert stated that Ballard has a long way to go before it can proclaim success in proving the fuel-cell business can be profitable. In Asia, we have seen moderate securities lending demand for Cathay Pacific since the revelation of the hack, with its shares down 16% in 2018 and now trading at a low not seen since June 2009. In Europe, problems are compounding for Spanish supermarket chain Distribuidora.

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Trump Trades Blows with China

The International Monetary Fund has downgraded world growth forecasts, warning that a U.S.-China trade war will hit economic growth. The IMF is now predicting 3.7 per cent global growth in both 2018 and 2019, down from 3.9 per cent for both years.

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From the Securities Lending Trading Desk

In the US, we are seeing investors sell off SONO amid growing concerns about the massive headwinds from competition from not only Amazon but also Apple and Google. In Asia, shares in KYB Corp fell in Tokyo trading after the hydraulic equipment manufacturer admitted falsifying quality control data for earthquake shock absorbers. Finally, in Europe, the plot thickened for Patisserie Valerie (CAKE LN) as news of previously unknown overdrafts surfaced and reports were released that the business could face a parliamentary investigation.

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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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