Securities lending adds return, risk for funds
With rising short interest and low fees, it's an attractive practice for mutual funds and ETFs, but may not be good for investors.
Rising short interest, and an increasing thirst for fees, could prompt a rise in securities lending by mutual funds. The practice is good for the funds, but it may not be good for your clients.
Investors who sell securities short are betting that prices will fall. To sell short, you need to borrow
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