Orbisa on DJT Part 3

Returning to focus on Trump Media and Technology Group in Part 3 of our series, DJT shares have continued to remain in demand in the securities finance market as a large share lockup is set to expire on September 25. Orbisa observed a significant increase in the DJT lendable supply, with inventories increasing from 2.9 million shares on June 20 to 15.9 million on September 13. That supply was quickly absorbed by borrowers who paid a premium to source the stock, with the borrower demand averaging 91% and the financing rate averaging 2,312 basis points over the same period. As the lockup expiry presents significant downside risk for investors in DJT, Orbisa will continue to closely monitor securities lending activity. Head to Orbisa Take Notes for Part 1 and Part 2.

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Published September 19, 2024.