In the substantial share holder announcement made by CS on Friday they mentioned "Master Share lending agreement" This agreement forms part of the convertible bond issue arranged by them in April.
They maintain that under the agreement they are entitled to borrow 36 Million LNC shares so i presume they hold the same equivalent in bonds? As I don't own any bonds I'm not entitled to borrow ant stock from the master lending agreement to short shares against my bond holding.
In April there was a huge debate on hotcopper about bond holders shorting stock against their bonds which caused the SP to correct from $2.50 plus. I maintained that no one in their right mind would buy LNC bonds to shorts LNC stock..... it made no sense to me then and here's CS stating that they did not participate in the borrowing agreement.
LNC Price at posting:
99.5¢ Sentiment: None Disclosure: Held
