The Market Often Confuses Visibility With Truth

Illustration of a bridge in heavy fog with cars within stock loan market
Photo by Roman / Unsplash

Many widely cited indicators for securities lending exist because they are visible, not because they are comprehensive.

Short positions, usage, and published borrowing rates provide a partial view of a market built on discretion and opacity. They describe what can be observed, but not necessarily what matters most.

The most important dynamic processes in securities lending often remain hidden until they force a change in behavior. By the time they appear in public data, they are no longer leading indicators.

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