It's all business and who can blame them for making extra interest off the backs of shorts.
Yep, fair play. This way Blackrock makes money in either direction. That is how smart money plays risk.
But I don't think the shorts suffered much with the little interest taken off their backs. Lol. They made a huge profit on the way down.
And surely Blackrock wouldn't agree that shorts have any influence on the HDY shareprice, or why would they lend out their shares? What's their game in doing so? Buy more shares at a cheaper price to lower their cost basis if HDY is forced into massive dilution?
Holding the number of shares they do the last thing they are going to allow is the shorts to drive HDY into the ground.
The price declines because there is an absence of buyers, not because of the "shorts" driving anything. Rather the shorts rode the shareprice collapse that has seen $7 dollars taken off the HDY shareprice. You don't have to drive a roller coaster when it hits the peak and starts the ride down, you just remain strapped in.
In other words, there's no doubts in the mind of Blackrock that they will more than recoup their initial investment plus a return.
Heh, Blackrock takes losses just like everyone in the markets which are the world's biggest casino.
If Blackrock had "no doubts" that HDY would trade far higher, why wouldn't they be buying more shares and lowering their cost basis? Sounds like easy money and a huge return.
Why isn't Blackrock buying if they are so certain?
What I find inconsistent is how Blackrock is often considered HDY's knight in shining armour.
HDY shorts on the other hand are considered an malevolent force which is negative and somehow conspiring to lower the HDY share price and artificially driving it lower.
But when it emerges that Blackrock may be loaning those evil short shares, that's just ok, Blackrock can do no wrong.
But hey, nothing wrong with this either. It's all business and who can blame them for making extra interest off the backs of shorts.
Yet without bullets a gun can't shoot and without loaned shares a shorter can't short.
So something is considered deeply suspicious and bad for HDY, yet if the holy Blackrock does it fair play?