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The Swede

12/30/17 4:56 AM

#10317 RE: Helium-3 #10315

Yes, using repo agreements would curtail some risk of being short.

I have now learned that the US lenders are all 4 entities that all have market maker activities in SIAF (don't know the names of them), knowing that makes it even more likely that the collateral shares are in the float in one way or another. With 4 lenders the there is less risk (for each individual lender) to sell the shares in to the market compared with only having one lender.

Regardless whether repo agreements is in place or, I'm suggesting that more or less all shares from the US lenders are in the market at any given time.

My biggest issue with thinking that the lenders is short in one way or another is that risk must be so great that I just can't see anyone take that risk unless they have no intention to give back the shares. With repo agreements in play it makes it more possible that that the shares will be returned, so maybe it's just wishful thinking from my side. Solomon is still very clear that ALL shares will be returned.