Vanguard lends the underlying shares of their ETFs to other institutions.

>>1636637
Who is that in the pic?

On what terms does Vanguard lend out shares?
Vanguard becomes insolvent its liquid assets like cash and bonds are less than the debt it needs to pay.

>>1636637
I don't know, but this is worrying me. Can you give me a source?

>>1637213
https://advisors.vanguard.com/iwe/pdf/Sec_lending.pdf

https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/InvResImpactSecLending

https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/InvResImpactSecLending

>>1636642
Darude Sandstorm

>>1637273
I'm not an expert by any stretch of the imagination, but doesn't that first source say that every share they loan out, has cash collateral? So, in the very rare case (assuming they are being truthful with their " ultraconservative money market fund" buzzwords) a loaner goes under, they can just use the collateral to buy a new stock, right?

>>1637352
In a crisis money markets will dry up just like they did in 2007. Money market liquidity is even worse now due to the new SEC rules. And money market shares are no longer pegged to $1 instead they float.

>>1637376
>due to the new SEC rules
Care to elaborate?
>money market shares are no longer pegged to $1 instead they float
Okay, now I'm really clueless.

>>1637419
http://www.bloomberg.com/news/articles/2016-08-03/obscure-rule-to-fix-2-7-trillion-market-draws-tireless-opponent

File: Screenshot_2015-10-25-03-31-50.jpg (65KB, 1295x973px) Image search: [Google]

65KB, 1295x973px

>>1636637
you are thinking too deep thoughts

>If Vanguard loses even $1 of equity that they lend out, technically they would become insolvent (until they raised fees).

Did you really think this through?
Do you really think a company that handles billions of dollars will be killed by losing one dollar?