Explore research from MFA, partners, and other industry experts on the trends and impact of the private funds and alternative investment industry. These reports, white papers, and other products provide invaluable insights into the key role of alternative investment funds in capital markets around the world and how they help investors—including pensions, foundations, and endowments—deliver for their beneficiaries.
Following the 2008 global financial crisis, many banks “de-risked” and, as a result, decreased lending to many small and mid-size companies.
In the wake of the market frenzy around GameStop, some stakeholders such as the Depository Trust Clearing Corporation, are examining whether counterparty risk in stock market transactions could be reduced through a shortening of the settlement period from the current two-day (T+2) market standard.
It is very rare for short interest in a company to reach the levels that GameStop experienced. In fact, there have only been 14 instances in the last 12 years that a U.S. company has experienced short interest exceeding 100 percent of its tradable shares.
Short selling is important to a variety of market participants. Investors use short positions to express a view that a security, such as a stock, is overvalued or to hedge against risk. Pension funds, mutual funds, and endowments earn returns by lending stocks to short sellers, and market makers facilitate…