Stock-Lending is a complicated business but not as complicated as its leading practitioners would have you believe! A complete glossary and guide to stock-lending can be found here:
The concept of Utilisation is central to understanding the demand for borrowing stock. Utilisation is defined as: the amount of stock which has been borrowed, as a percentage of the amount which is available to borrow from the majority of the world's major custodians and beneficial owners.
Utilisation numbers need to be used in conjunction with the percentage of market cap on loan and new loan volumes in order to get a full picture of activity in stock lending.
% Market Cap on Loan - this is the percentage of the entire Market Cap of a Stock that is on loan on any given day
Lendable as % of Market Cap - the percentage of the entire Market Cap of a Stock that is lendable at any given time, i.e. the number of shares held by institutions who make their stock available to borrow and are members of the Data Explorers peer group. For more information about the depth within the peer group across individual countries, please get in touch.
Lendable Quantity decrease/increase - Put simply, this is the quantity of what is available to borrow. This is taken from 20,000 institutional investors who make their stock available for borrowing.
Days to Cover - the number of days it will take for the quantity of shares being borrowed to be bought back and returned if they are able to use 100% of the 21 day average turnover. In America this is called "short interest ratio."