Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Stocks that are generating the most revenue for institutional lenders - may be a better list than most expensive stocks to short

After posting lists of the most expensive stocks to borrow and short, I thought that it would be valuable to post a list sorted by the revenue that each stock is generating in the securities lending market.  To calculate revenue, I've simply multiplied the market value on loan for each stock by the average fee that brokers (and hence hedge funds) must pay to borrow (and short). 

Many blue-chip stocks have very high loan balances because institutions use them as collateral to borrow cash.  This is why the securities lending market is also known as the equity finance market.  

Many other small-cap stocks have very high average fees, yet because there's not much supply out there, there's no opportunity for most investors to short.

I hope that this list shows the most popular short plays, in that the average fees are relatively high, and the balances that brokers are borrowing are high as well.

The top stock on this new list is AIG.  With almost $1 billion worth of AIG stock on loan in the securities lending market, and an average fee in the double-digit percentage points, the daily revenue from lending AIG is substantial.  Is there necessarily a reason to short AIG just because it's on this list?  No.  But I hope that people can use this list to get some new ideas.

Name Ticker Change in cost-to-borrow (bps)
AMERICAN INTL GROUP INC      AIG  396
SEARS HLDGS CORP             SHLD 63
SANOFI AVENTIS               SNY  402
NOKIA CORP                   NOK  1,056
ST JOE CO                    JOE  -1,815
FIRST SOLAR INC              FSLR 22
CHINA MEDIAEXPRESS HLDGS INC CCME 189
RUBICON TECHNOLOGY INC       RBCN -667
AIXTRON SE                   AIXG -94
AVANIR PHARMACEUTICALS INC   AVNR 941
CHINA-BIOTICS INC            CHBT 1,054
BOLIDEN AB                   BLS.TSX 353
ISHARES TR                   IWM  3
MANNKIND CORP                MNKD -41
MAGNUM HUNTER RES CORP DEL   MHR  615
FEDERATED INVS INC PA        FII  86
STAR SCIENTIFIC INC          CIGX -109
CONNS INC                    CONN -924
BRIDGEPOINT ED INC           BPI  492
DIGITAL RLTY TR INC          DLR  -120
LIFE PARTNERS HOLDINGS INC   LPHI 2,642
ALPHA NATURAL RESOURCES INC  ANR  0
YONGYE INTL INC              YONG 3,684
CHINA SHEN ZHOU MNG & RES IN SHZ  3,399
CHINA AGRITECH INC           CAGC 421
NEOPROBE CORP                NEOP -2,006
YRC WORLDWIDE INC            YRCW 916
CHINA GREEN AGRICULTURE INC  CGA  2,371
VEECO INSTRS INC DEL         VECO -1
SOMAXON PHARMACEUTICALS INC  SOMX 1,375
CLEAN ENERGY FUELS CORP      CLNE 530
BARNES & NOBLE INC           BKS  181
APRICUS BIOSCIENCES INC      APRI 4,677
BANK MONTREAL QUE            BMO  96
DELCATH SYS INC              DCTH 597
AUTONATION INC               AN   -12
EVERGREEN SOLAR INC          ESLR 1,117
ATP OIL & GAS CORP           ATPG -21
EDUCATION MGMT CORP NEW      EDMC 9
TANZANIAN ROYALTY EXPL CORP  TRE  -420
SUNPOWER CORP                SPWR.A 91
URANIUM ENERGY CORP          UEC  -23
RITCHIE BROS AUCTIONEERS     RBA  -35
FEIHE INTL INC               ADY  836
NYMOX PHARMACEUTICAL CORP    NYMX 3,313
ROCK-TENN CO                 RKT  37
ZAGG INCORPORATED            ZAGG 277
ROYALE ENERGY INC            ROYL 1,164
BSD MED CORP DEL             BSDM 43