From the Securities Lending Trading Desk

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Hertz (HTZ) cancelled plans to redeem debt causing shares to plummet >20% and short demand to increase. In Europe, we’ve seen securities lending demand rise off the back of earnings reports.  Meanwhile in Asia , shares in Standard Chartered Plc fell sharply in Hong Kong trading after the company warned investors about its growth prospects and did not reinstate its dividend. 

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From the Securities Lending Trading Desk

IMAX China Holding Inc. reported a drop in first half net income amid criticism it missed out on distribution of several films that were successful in the Chinese market.  We’ve seen strong directional demand for Caesars Entertainment, as short sellers maintain their bearish bets. In Europe, growth in online retailing is triggering heightened borrow fees and utilization for traditional Italian retailers.

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From the Securities Lending Trading Desk

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Demand has increased for Asia’s largest international airline after its chief executive officer admitted to a “disappointing” first half financial performance. There is increased fundamental demand for Virtu Financial Inc. (VIRT) as high-frequency firms face headwinds from the rising cost of infrastructure and low volatility. Meanwhile, Paris’ biggest landlord, Gecina, is embarking on a rights issue to fund expansion.

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From the Securities Lending Trading Desk

Liquidity has tightened in Spanish discount grocery store chain Distribuidora Internacional de Alimentacion SA (DIA SM). Insys Therapeutics, Inc. (INSY) remains a focus of fundamental demand as the share price declines amid kickback scandals and greater scrutiny on the company’s lead drug, Subsys. Meanwhile, China’s largest shipping company announced plans to buy out of its main rivals in another sign of consolidation in the embattled industry.  

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From the Securities Lending Trading Desk

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Bullish sentiment for U.S. assets leads to increased IPO activity. In Asia, one of Japan’s largest car airbag manufacturers filed for bankruptcy on Monday. China’s domestic equities will join MSCI’s benchmark indexes, marking a landmark step in the continued integration of the nation with the global financial system. The Finnish construction company, Yit Oyj has sought to acquire Lemminkainen Oyj as it bids to increase its footprint in northern Europe.

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From the Securities Lending Trading Desk

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As Sears Holdings’ struggles continue, we are seeing increased bearish sentiment for companies with exposure to the retailer, specifically REIT, Seritage Growth Properties.  Borrowers are seeking shares of Toshiba Corp after plans to sell its memory-chip business took an unexpected turn last week.  In Europe, capital raising deals are driving securities lending demand. Continue reading