Investment Strategy

Shorting not the only risk for funds in sec lending

Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} The government ban and new disclosure regime for short-selling are misguided and had exacerbated sharemarket volatility, while the opacity of securities lending covered up […]
Investment Strategy

The shorting ban didn’t work and the reforms

It was expected that financial stocks  would rally on the first day of the  short-selling ban in Australia, back on  September 21. The ASX200 financials  index (XFJ) gained 5 per cent that day,  as shares in ANZ increased by 8.1 per  cent, Commonwealth Bank of Australia  by 4.4 per cent, Westpac by 4.9 per cent  […]