RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:prerolls It's hard to say for sure but some shorts probably have access to cheaper borrow so they might be able to hold the debentures hedged and make money risk free on the interest from the converts.
The converts rallying is probably the only way they take the trade off (cover their shorts) but its risk free to them down here.
johnale wrote: So if I'm understanding this dynamic correctly.
if there are probably no fundamental shorts at this point - and there are only shorts who are hedged against the debentures. A win win game for them.
with 7.6mil debs left - say 1.1mil are in long hands (just a guess) leaving 6.5mil debs being played with.
6.5mil debs convert to (x3.508) - 22.802mil fire shares.
with 11.8mil shares short - they are hedging at about 52%.
does that seem about right?
Considering the short borrow cost, are they not losing money unless they are frequently covering through deb conversion or open market?
eventually with all this volume and shares turned over - this should run out of steam - debs take off and less pressure on equity?