Short-selling, the supply side

One widely accepted idea is that high lending fees predict negative returns, since capture information held by short sellers on the demand side. Tradition sees supply side as passive, with stock lenders acting price takers. Recent evidence, however, shows are not truly passive. This paper analyzes Brazilian loan market, disentangling shifts in shorting and curves to understand mechanism linking returns. We also connect curve news reports verify how react new information. Our results indicate decrease when they future returns use change conditions, indicating