IAB offers participation in the "Stock Yield Enhancement Program". Participants offer their stocks to lend them out to stock sellers.
I have learnt that one disadvantage in participation in this progam is that you receive an "in lieu" payment instead of the dividend, which is treated differently by tax authorities.
Are there any other disadvantages ?
What is approximately the yield per day for lending a stock ?
Best regards, Myrrdin
The following user says Thank You to myrrdin for this post:
a) SLB is only possible for "fully paid" stocks - i.e. even if you have a margin account, the SLB stocks must be
fully paid.
b) The SLB rates depend on the respective stocks - see the TWS SLB analysis tool.
c) IB typically pays you about 50% of the income that they generate by lending out your stocks.
The following 2 users say Thank You to choke35 for this post:
that all of the details are laid out on the IB web page. I do not see anything that I'd consider a disadvantage for me. I sell a lot of front ex 30 delta puts for income. I like that better...BUT on big forever positions if they are HTB you can do a lot worse.
The following user says Thank You to wldman for this post:
