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Industry Discussions / Real Estate Inv. Trusts: REITs

URL:  http://boards.fool.com/hey-yoda-ben-on-some-platforms-100-of-reit-30534516.aspx

Subject:  Re: The One Share Club Date:  2/10/2013  3:01 AM
Author:  BenHacker Number:  73658 of 80711

Hey Yoda,

Ben, on some platforms 100% of REIT preferreds are not shortable. They are treated like corporate/muni bonds which are not shortable.

A side note, you can short Corp bonds on IB as well. Generally they require larger size. Issues I have looked at were 100 bond minimums (~$100k minimum) but IB is forging ahead in a lot of these areas so what is usual is quickly changing.

A large concern is the illiquidity. The brokerage does not want to let the investor get into a short squeeze position where you literally might not be able to cover the shorts at any price.

IMO, there is limited demand at typical retail brokers for this service and that is why they don't bother trying to get decent lending inventory. It's not about protecting people from their l