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This paper examines the equity loan supply for short selling. Using detailed stock lending data, we show that active equity funds, on average, are informed lenders. The stocks they lend outperform those that they do not. The stocks they recall and sell perform worse in the future than those that...
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information and credit markets. Credit instruments are intrinsically linked to equity instruments. The strength of this link … linking information to credit markets …
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volatility, worsens market efficiency and liquidity, and discourages the production of fundamental information relative to a … world in which all traders freely observe prices. Generally allowing exchanges to sell price information benefits exchanges …
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have better information about borrowers. We test this by contrasting the use of collateral between formal and – better … than informal lenders, controlling for conventional determinants of collateral. Moreover, having better information about …
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