Borrow rate
MarketsDefinition
Annualized fee paid by short-sellers to borrow shares. Funded by buy-side lenders (mutual funds, pension funds, ETFs). Splits between the lender and the broker as a finance.
Easy-to-borrow: 0.25-1% annualized. Hard-to-borrow: 5-50%. Special situations (HTZ post-bankruptcy, GME at peak): 100-1000% annualized. Borrow rates are real-time market signals.
Easy-to-borrow: 0.25-1% annualized. Hard-to-borrow: 5-50%. Special situations (HTZ post-bankruptcy, GME at peak): 100-1000% annualized. Borrow rates are real-time market signals.