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.
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.
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.
In the US, we’ve seen lending levels remain steady on Insys Therapeutics amid continued volatility. Chinese car manufacturer BYD Co Ltd.’s share price continued to decline last week as details emerged that a fraudster had been conducting business in its name. Whilst in Europe, Greenyard fell 37% following a plant closure due to a Listeria outbreak.
Demand for Achaogen, Inc., a specialty U.S. based pharmaceutical company, has spiked this week as the share price fell to a 52-week low. Chinese smartphone giant Xiaomi Corp launched its IPO in Hong Kong last week. In Europe, Mothercare announces store closures, continuing the negative outlook for the British high street.
We’ve seen additional short interest for cannabis stocks in Canada after the Senate approved a bill to legalize recreational marijuana, sending shares higher. The Australian arm of Domino Pizza Enterprises saw multiple broker downgrades last week amid an increasingly negative business outlook for the company. M&A activity is a key driver this week for securities lending in Europe.
In the U.S., The B&G Foods (BGS) dividend continues to yield one of the highest pay-out ratios among its peers. The escalation of the trade war between China and the United States has forced one of Japan’s largest electronics manufacturers to cancel a proposed share sale. Whilst in Europe, rights issues continue to be key driver for securities lending demand with Prysmian and Elementis both making announcements.
This week, as the stock rallies, new China IPO iQiyi (IQ) has become a focus of recent demand. Asian stocks with exposure to digital currencies fell sharply in trading last week after yet another cyber-hack. In Europe, construction sector short interest is trending upward.
Continue reading “From the Securities Lending Trading Desk”
We’ve seen increased demand for J.C. Penney Company after shares lost 17% in May. Toshiba Corp announced a higher than expected $6.3 billion stock buyback last week, sending its shares soaring and leaving investors brimming with optimism. In Europe, UK commercial bank CYBG short interest climbs as negotiations with Virgin Money mature.