Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2, 2022 erstellt
Description:
Using newly available data on mutual funds' equity lending at the position level, we find a striking pattern that equity lending is persistent: for the same stock, a past lender fund is ten times more likely to have it on loan than a fund that did not lend. We argue that such persistence is driven by heterogeneity in funds' willingness to supply lendable shares and that conventional lending supply measures understate short-sale constraints. Consequently, when existing lenders sell their shares, equity lending supply drops and lending fees spike, even if lenders' selling is motivated by non-informational considerations. After lender exits, stock prices become less efficient and more likely to be overpriced