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A. B. Nicholas Support

Mandatory Compliance Training for All A. B. Nicholas Agents: Required to Receive Fees.

Beginning with our first session on March 21 at 10AM, all current and future referral agents will be required to take one mandatory Compliance and Training session before they will be eligible to receive any fees on their referrals into the ABN LeverageLine securities based credit line program or the OpLine UPREIT/OPU credit line program for UPREIT owners. The webinar will host a guest speaker, one of several licensed lender

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March 19, 2019 7:00 AM
Securities Law
A. B. Nicholas Support

The Dangers of Nonrecourse Stock Loans And How To Avoid Them

The Dangers of Nonrecourse Stock Loans And How To Avoid Them Why an Institutionally Managed, SIPC/FINRA-Member Lending Facility Should Be Your ONLY Securities-based Credit Line Consideration    A nonrecourse, transfer-of-title securities-based stock loan means exactly what it says: You, the titleholder (owner) of your stocks or other securities are required to transfer ownership of your securities to a third party before you receive your loan proceeds. The loan is “nonrecourse”

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January 23, 2019 8:27 AM

I Can Get Get a Margin Loan from My Stock Brokerage Account. What Makes ABN’s LeverageLine Different?

Sure. You CAN get a margin loan, usually very easily with a couple of clicks, for any of your stocks. It will be a 50% loan-to-value cash piece, and you will have the freedom to invest it in more of the same stock. Your brokerage will automatically assume you intend to buy more of the same stock in the same account. You are not expected to use a “purpose loan”

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January 7, 2019 3:11 PM
Education Focus
A. B. Nicholas Support

Should I Get a Loan Against My Stock Portfolio in a Down-Trending Market?

Note: Visit our website for more about our LeverageLine stock loan program here. One of the questions we often get here at A. B. Nicholas is “If the market is trending downward, does it make sense to obtain a loan against my stock portfolio instead of selling it outright?” Because of the myriad different combinations of securities in any given portfolio, and many other factors both business and personal that

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January 3, 2019 6:19 PM
stock as collateral
Stock Loans
A. B. Nicholas Support

Portfolio Loan Rates – Decoding Their Meaning

You are probably familiar with mortgage interest rates. You may be familiar with the interest (rate) paid on your CD os Money Market account at your bank. These are straightforward numbers, often tied to the Prime Rate. But your stock portfolio loan rates are based on other factors, which may not be familiar to you. In this article we attempt to decode the world of interest rates and give you

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December 14, 2018 5:40 PM

Stock Portfolio Loans: The Essentials

One of the first things we hear from our new clients is that they are approaching the issue of securities-based credit with trepidation. Some feel that a portfolio of stocks or bonds is much too unstable to be trusted as collateral for a loan (even though the lending institution might have no trouble with it). Others may have heard about the ill-fated “non-recourse stock loans” of the last decade, that

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December 12, 2018 2:26 PM

Share Value and Stock Loan Lending – How a Lender Sees It

Investors have many metrics for determining the valuation of a company’s stock, and two of the most commonly used are Book Value and Share Value  (also known as Market Value). Both valuations can be helpful in calculating whether a stock is fairly valued. Let’s look briefly at the differences between the two as they can impact the loan-to-value of your LeverageLine line of credit. So What is Book Value? The book value of

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May 1, 2018 10:29 AM
UPREIT
Education Focus
A. B. Nicholas Support

REITLine is a Loan Against UPREIT Operating Partnership Unit Shares (OPUs), But What is an UPREIT? What is an OPU?

What is an UPREIT? An umbrella partnership real estate investment trust, or UPREIT, is an entity that REITs use to let property owners contribute their real estate property in exchange for operating partnership units that can be converted into REIT shares. Like a 1031 exchange, this transaction lets property owners avoid capital gains taxes on appreciated real estate. The operating partnership, or OP, units received in an UPREIT transaction are

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October 25, 2017 3:31 PM
A couple signing documents together at a desk
Education Focus
A. B. Nicholas Support

Does Your – or Your LeverageLine Client’s – Stock, Bond, or Mutual Fund Portfolio Qualify for LeverageLine Financing?

One of the most frequent calls we get is about whether a particular portfolio qualifies for our versatile LeverageLine securities-portfolio credit line. The rules are pretty simple, but you can get more details on our website by visiting our page for Loan Requirements. You can also check on your client’s securities history yourself by clicking here. If the non-IRS/401K stocks, mutual funds, bonds, ETFs, etc. in your portfolio. All have

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February 21, 2017 10:28 PM
sbloc rates
Education Focus
A. B. Nicholas Support

How Are ABN LeverageLine Interest Rates Determined?

What is an interest rate? According to Investopedia, an interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. How are interest rates applied? Interest rates apply to most lending or borrowing transactions. Individuals borrow money to purchase homes, fund projects, launch or fund businesses, or pay for college tuition. Businesses take out loans to fund capital projects and expand their

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February 1, 2016 7:30 PM
nonrecourse stock loan nonrecourse stock loans
Agent Announcements
A. B. Nicholas Support

The Strict ABN “Nonrecourse Stock Loans” Prohibition Policy and Why

Notice for Affiliate Referral Agents on Nonrecourse Stock Loans   Please note that it is a violation of your Agent contract with A. B. Nicholas to offer any form of nonrecourse stock loans on your website, in an email, or anywhere else. Individuals who are known to have referred clients into any such program or who have such materials on their websites will be considered in breach of the affiliate

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October 31, 2014 1:26 PM