Lyft sees spike in shares on loan
17 April 2019 New York
Image: Shutterstock
Transportation network company Lyft currently sees 12.1 million shares on loan, the most following the initial public offering (IPO) after briefly dipping last week, 37 percent of float, according to Sam Pierson of IHS Markit.
Pierson noted that borrows equate to $678 million at current share price, which is down 28 percent from the close of the first trading day.
According to Pierson, borrow cost continues to be very low with rebate basically flat to the overnight bank funding rate (OBFR).
Meanwhile, 2.3 million shares avail for borrow reported coming into today, Pierson explained, and utilisation is 75 percent, so further increases in demand will likely push borrow fees back up to a degree.
Pierson added: “Total securities lending supply pool of shares is 9.5 million, so we track 27 percent of float.”
“Further 4.5 million shares on loan are reported as borrowed from alternative sources to the lendable assets reported to IHS Markit.”
Pierson noted that borrows equate to $678 million at current share price, which is down 28 percent from the close of the first trading day.
According to Pierson, borrow cost continues to be very low with rebate basically flat to the overnight bank funding rate (OBFR).
Meanwhile, 2.3 million shares avail for borrow reported coming into today, Pierson explained, and utilisation is 75 percent, so further increases in demand will likely push borrow fees back up to a degree.
Pierson added: “Total securities lending supply pool of shares is 9.5 million, so we track 27 percent of float.”
“Further 4.5 million shares on loan are reported as borrowed from alternative sources to the lendable assets reported to IHS Markit.”
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