The chart below, from Data Explorers, shows that the mammoth short-selling interest in Lloyds Banking Group shows no sign of shrinking ahead of the restructuring it is expected to announce later this week:

Almost eight per cent of all Lloyds shares being out on loan sounds like a hefty figure, especially if you factor in its diminished free float as a result of the UK government’s stake.

So, what odds on things getting a bit squeezy?

UPDATE:
More short action from Data Explorers, this time on British Airways. The short base ahead of Friday’s results now stands at 16 per cent – not far off the all-time high of 17.4 per cent.

Related links:
The pictorial Lloyds capital raising – FT Alphaville
Lloyds to offer sweeteners to bondholders – FT

This entry was posted by Miles Johnson on Monday, November 2nd, 2009 at 15:51 and is filed under Capital markets. Tagged with aps, Lloyds, short sellers. Edit this entry.