".......which are used by hedge funds, pension funds, and banks/broker-dealers in order to post initial margin, fund balance sheets, cover short positions, etc......."
I definitely cannot understand this sentence. Why should a pension fund need to borrow stocks? AFAIK they are buying stocks for the long term, hence they should be on the lenders' side..
".......which are used by hedge funds, pension funds, and banks/broker-dealers in order to post initial margin, fund balance sheets, cover short positions, etc......."
I definitely cannot understand this sentence. Why should a pension fund need to borrow stocks? AFAIK they are buying stocks for the long term, hence they should be on the lenders' side..