Short Investors Take Notice of AIG and MetLife [View article]
Agree with investing57 comment. The title of the article "Short Investors Take Notice of AIG and MetLife" is very misleading. Why? MetLife (MET) does not have increasing short interest due to fundamental issues with the company. MetLife just completed the shareholder exchange for Reinsurance Group of America stock. On June 2nd, MetLife and Reinsurance Group of America proposed a deal that would cause MetLife to spin-off its majority position in Reinsurance. These types of deals bring in arbs causing short interest to increase. The spike in short interest occurred after this deal was cemented in late July. (see chart quantpartners.com/rese...) Firms are not shorting MetLife for fundamental reasons as this article seems to imply.
Another problem with this article is terminology. What does “utilisation is at 75%” mean? I am curious about this term becasue in my 22 years on Wall Street I have never heard this term. Also, would love to have a definition of the term Market Cap on Loan (%MCOL)?
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Agree with investing57 comment. The title of the article "Short Investors Take Notice of AIG and MetLife" is very misleading. Why? MetLife (MET) does not have increasing short interest due to fundamental issues with the company. MetLife just completed the shareholder exchange for Reinsurance Group of America stock. On June 2nd, MetLife and Reinsurance Group of America proposed a deal that would cause MetLife to spin-off its majority position in Reinsurance. These types of deals bring in arbs causing short interest to increase. The spike in short interest occurred after this deal was cemented in late July. (see chart quantpartners.com/rese...) Firms are not shorting MetLife for fundamental reasons as this article seems to imply.
Sep 17 11:01 am
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All Comments by bullet86 »Short Investors Take Notice of AIG and MetLife [View article]
Another problem with this article is terminology. What does “utilisation is at 75%” mean? I am curious about this term becasue in my 22 years on Wall Street I have never heard this term. Also, would love to have a definition of the term Market Cap on Loan (%MCOL)?