InvestorsHub Logo
Followers 9
Posts 818
Boards Moderated 0
Alias Born 08/31/2000

Re: RealUSA post# 127358

Friday, 12/29/2017 3:28:56 PM

Friday, December 29, 2017 3:28:56 PM

Post# of 163716
The point is too theoretical to argue. In theory, of course if the lender didn't think the money would be returned they would sell the collateral shares. Of course they would. After all, that's what it's for. (duh!)

But they would have to have a reason to believe that and it would have to be within a risk informed decision framework. Otherwise the portfolio manager of the lending company in question would get instantly fired the second one of these decisions went against him. When the company is making their quarterly payments and making provisions to pay the balance early, it doesn't seem like a remotely reasonable risk.

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.