Yulia Slavina

Pump-and-dump schemes in stocks and bonds still prompt reflection, Kris Sidial notes

Pump-and-dump schemes in stocks and bonds still prompt reflection, Kris Sidial notes
Stock and bond pump-and-dump history

Kris Sidial compared the boiler room pump-and-dump schemes involving low-quality stocks in the 2000s to similar activity with bonds in the 1990s. Sidial described how brokers sold poor-quality securities at substantial markups and noted that many people now look back and question how these schemes succeeded.

Sidial has previously highlighted that a sharp equity financing slowdown since June has stalled public equity market flows, as reported in one of his recent analyses. He has also pointed out that short interest charts often miss critical market flows, with banks easing margin requirements for client bets in another commentary. These observations provide further context to his concerns over risky trading practices.

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