Stock lending in UK Plc - RD:IR
The level of stock lending in the UK market is on the rise. This does not indicate that shorting itself is increasing, but often paints a picture of more public companies being shorted by investors. With global markets going through turbulent days, what precisely is causing this stock lending to become more common as it has?
This paper looks at the huge increase in stock lending that UK issuers are currently experiencing: its causes, its effects, and how best to deal with it. When an issuer’s stock is being loaned out, engagement is key to get to the bottom of the cause and, perhaps more pertinently, the reason. If the stock is on loan to investors who wish to short the company, then it is vital that the IR function reaches out to those investors to understand their position. Using our own data, public data and further research, Mark Robinson covers this topic in our latest white paper.
RD:IR is an independent global Investor Relations consultancy offering a wide range of IR-related analysis, research & advisory services to over 600 UK & international public companies. We provide unconflicted advice on investor marketing and communication strategies to assist boards, senior management and IR professionals to manage their relationships with the capital markets. Our business & approach is global, but we take pride in our customer service & focus.
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Published 10 January, 2019