The collateral margin is also linked market to market in share lending. If the collateral falls in value or goes up in value, it either has to be replensihed or given back based on the percentage agreed, noramlly 90 -105%. With share lending though as compared to margin lending, the margin is always fully drawn to the agreed terms and adjusted every day due to the counter party credit risk.
There is no way in hell I would have given my shares up for the pathetic little margin paid like 20% for top 300 for share lending, and I would have had my facility fully drawn at all time to reduce the counter party credit risk. Also, I certainly not have left my protective margin with the Opes Prime boys to party with. Like every one, thought it was a mrgin loan, so why bother drawing funds to counter credit risk?
