Borrow Stability Often Matters More Than Borrow Cost

Borrow discussions tend to gravitate toward rates. High fees attract attention, low fees reassure. Yet in practice, the stability of borrow often carries more weight than its price.

A position supported by predictable, durable supply can tolerate higher costs far more comfortably than a cheaper borrow exposed to recall risk. Instability introduces uncertainty that pricing alone cannot offset. Traders and portfolio managers are often willing to pay a premium for confidence, particularly in names where timing and continuity matter.

Borrow cost is visible. Borrow stability is not. The latter is frequently the more decisive factor.