I just got an email from Fidelity, where I hold a large SCTY position (I'm sure this would apply to TSLA, too), inviting me to participate in their "Fully Paid Lending Program". Apparently I loan some or all (at their discretion) of my shares to them, and I get a monthly interest payment on those shares. The email stated that the current return on SCTY is currently 13.25%. The only downside seems to be if Fidelity fails and can't pay me back (which, having just been reminded by The Big Short, I suppose could happen).
13.25% sounds like a no-brainer to me, so wondering if anyone here:
I've attached the Fidelity pdf describing this program.
Cheers,
Fred
13.25% sounds like a no-brainer to me, so wondering if anyone here:
- Has any first-hand knowledge of this strategy
- Is aware of any downside not mentioned in the brochure (am I helping shorts?, or just giving them more rope?, or...)
I've attached the Fidelity pdf describing this program.
Cheers,
Fred