Summary: Stock lending - or securities lending - is a tool that has been used long and often by institutional investors. The concept offers an alternative revenue stream and has only recently become available for private investors and traders. And while the term may evoke different levels of confusion depending on how well trodden you are in the financial world, it is something you ought to consider.
When you enable stock lending at Saxo, the borrower will always be Saxo. This means that the only risk you face is that Saxo defaults and is unable to return your shares to you. To protect you from this, we will post cash or other securities in a separate depot corresponding to the value of the securities you have lent out. That's called collateral. The collateral ensures that even in the unlikely event that Saxo defaults, you get back the proceeds of the collateral.
2024: The wasted year
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
As US economic slowdown hints at a shift away from exceptionalism, USD faces downside with looming Fed cuts. AUD and NZD set to outperform as their rate cuts lag. JPY gains on carry unwind bets and BOJ pivot.
Amid AI and obesity drug excitement, equities see varied prospects: neutral on overvalued US stocks, negative on Japan due to JPY risks, positive on Europe. European defence stocks gain appeal.
With the economic slowdown, quality assets will gain favour, especially sovereign bonds up to 5 years. Central banks' potential rate cuts in Q2 suggest extending duration, despite policy and inflation concerns.
Commodities poised for rebound. The "Year of the Metal" boosts gold and silver, copper awaits rate cuts. Grains may recover, natural gas stabilises. Gold targets $2,300-$2,500/oz, copper's breakout could signal growth.
