Until recently, shareholders of publicly traded companies had only two real options for accessing their equity vested in their securities portfolio. Investors could use their stock as collateral to obtain very limited bank or broker loans. Typically these loans don't allow for a very high loan to value and usually carry full recourse terms. You could go to your brokerage for very restrictive margin loans which require strong credit worthiness, are limited by size or loan to value, also carry full recourse provisions and are subject to margin maintenance and house calls.
Now Securities owners and investors who want access to their cash and liquidity can do so with a stock loan from Pallas Financier, LLC
Owners of restricted stocks are limited in options if they wish to sell or access equity using their interest in their company owned stock.
The securities financing industry can now deliver a wide variety of lending solutions to many of the most common problems associated with accessing equity & liquidity.
These contemporary loan products provide borrowers with confidence by offering higher loan to values with limited-recourse alternatives while providing the owner with a hedged down side risk. Securities Financing are an ideal way for the investor to be in and out of the market simultaneously.
In general, Securities Financing will allow you
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to keep the securities in your name,
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skip the credit check requirement completely,
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use only your securities for collateral,
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and are an excellent way for you to hedge in the event of a market decline.