IHS Markit reveals most revenue-generating securities for Q2
29 July 2019 New York
Image: Shutterstock
Beyond Meat’s Q2 total revenues “unsurprisingly” topped the global Q2 most revenue-generating securities, according to Sam Pierson, director, securities finance, IHS Markit, during a webinar.
Pierson also revealed that some of the cannabis stocks were also impressive and neared the top of the global Q2 most revenue-generating securities and total revenues.
Wirecard was reported as the top revenue-generating stock in Germany for Q2 following the end of the short-selling ban, despite declining borrow demand during the quarter.
For weighted-average fees starting on day one of settlement, Lyft came in at 100 percent, while Beyond Meat came in at 60 percent.
According to Pierson, Uber came out rather unimpressive—based on the size of the float—the “balances for Uber and Lyft were fairly similar in the billion-dollar area but based on a much larger float for Uber there wasn’t much in the way of specials to be had”.
Also on the webinar, Pierson stated that there seems to be a correlation between the historical returns to being shorted the most shorted stocks and the forward demand for borrowing those stocks.
However, on a more positive note, there has been “pretty solid” returns to being shorted the most shorted stock. For the most part, this has been a more fruitful venture in the middle part of this year than it was in the early going in January and February were particularly brutal.
At the end of the webinar, Pierson was asked whether or not Beyond Meat revenues will hold up for the rest of the year.
He explained: “It is a toss-up of Beyond Meat on where the demand would be. One of the things with Tilray was the idea of paying up to be short over a lockup expiry didn’t really work in January because the large locked up holder announced that they weren’t going to sell two days before.”
“That might pose a risk for short sellers who might want to be short an initial public offering over the lockup expiry, given that in the moments before the lockup expiries there could be a public statement about locked up shareholders deciding not to sell, which would put them in a tough spot.”
He added: “It will be interesting to see what the demand will be but I think that maybe a lesson learned that could cap demand for lockup expiries."
Pierson also revealed that some of the cannabis stocks were also impressive and neared the top of the global Q2 most revenue-generating securities and total revenues.
Wirecard was reported as the top revenue-generating stock in Germany for Q2 following the end of the short-selling ban, despite declining borrow demand during the quarter.
For weighted-average fees starting on day one of settlement, Lyft came in at 100 percent, while Beyond Meat came in at 60 percent.
According to Pierson, Uber came out rather unimpressive—based on the size of the float—the “balances for Uber and Lyft were fairly similar in the billion-dollar area but based on a much larger float for Uber there wasn’t much in the way of specials to be had”.
Also on the webinar, Pierson stated that there seems to be a correlation between the historical returns to being shorted the most shorted stocks and the forward demand for borrowing those stocks.
However, on a more positive note, there has been “pretty solid” returns to being shorted the most shorted stock. For the most part, this has been a more fruitful venture in the middle part of this year than it was in the early going in January and February were particularly brutal.
At the end of the webinar, Pierson was asked whether or not Beyond Meat revenues will hold up for the rest of the year.
He explained: “It is a toss-up of Beyond Meat on where the demand would be. One of the things with Tilray was the idea of paying up to be short over a lockup expiry didn’t really work in January because the large locked up holder announced that they weren’t going to sell two days before.”
“That might pose a risk for short sellers who might want to be short an initial public offering over the lockup expiry, given that in the moments before the lockup expiries there could be a public statement about locked up shareholders deciding not to sell, which would put them in a tough spot.”
He added: “It will be interesting to see what the demand will be but I think that maybe a lesson learned that could cap demand for lockup expiries."
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