Borrow Market Volatility
Pentair (PNR) has seen a dramatic increase in the cost to borrow, which has surged 143% over the past week to 0.98%. This spike is particularly unusual given that shares available to short have simultaneously hit their highest level in months, currently at 3,084% of short interest.
Analysis
While the absolute borrow rate of 0.98% remains low, the rapid rate of change suggests a sudden tightening in the lending market or a change in lender risk appetite. The abundance of available shares suggests that the cost increase is not driven by a lack of supply, but rather by a shift in the cost of capital for short sellers in this specific name.
Signal data sourced from Ortex. This post is an original analysis prepared by The Forensic Ledger from publicly available data. Not investment advice.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.