Blog - ABNicholas

Mandatory Compliance Certification Can Now Be Completed On Your Time, Online

The mandatory compliance certification for A. B. Nicholas’s currently registered agents is now available for completion online, including registration, video training, and the Certification Test. Current agents who have not registered by April 1, 2019 will not be permitted to refer or receive fees pursuant to any LeverageLine transaction at A. B. Nicholas. We therefore urge all current agents to register as soon as possible. (Future agents will have three

March 25, 2019 3:59 PM

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

March 19, 2019 7:00 AM

Education Focus

Are you sure your clients are not eligible for LeverageLine financing?

Learn more about the stock loan business.

January 28, 2019 4:14 PM

Securities Law

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 title holder (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” so that you may, in theory, simply walk away from your loan

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”

January 7, 2019 3:11 PM

Education Focus

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

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 can affect any answer to this question, we need to be cautious. But

January 3, 2019 6:19 PM

Stock Loans

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

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

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

May 1, 2018 10:29 AM

Education Focus

OpLine is a Loan Against UPREIT Operating Partnership Unit Shares (OPUs). But What’s an UPREIT? What’s an OPU?

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 generally similar to shares

October 25, 2017 3:31 PM

Education Focus

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

February 21, 2017 10:28 PM

How Are ABN LeverageLine Interest Rates Determined?

All standard (default) LeverageLine interest rates are variable rates, based on a discounted “house” rate (an institution-determined figure based on various indicators) that is keyed to the size of the credit line offer; to this is added a small increment based on 30-day (monthly) LIBOR. (See the 30-day LIBOR rate on any of the major financial sites, including Bloomberg or Bankrate; the rate has remained within a relatively small range of variance over the last seven years.)

February 1, 2016 7:30 PM

Education Focus

The Role of Cash in a Securities-Based Line of Credit

How securities and cash figure in a LeverageLine securities-based line of credit.

April 30, 2015 1:29 PM

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

Important: Please note that it is a violation of your Agent contract with A. B. Nicholas to offer any form of nonrecourse stock loan 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 agreement and terminated immediately. It is the firm position of A.

October 31, 2014 1:26 PM

Education Focus

Securities-based Financing – The Missing Piece in Most Financial Planning

September 11, 2014 11:27 AM

Mandatory Compliance Certification Can Now Be Completed On Your Time, Online

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

Are you sure your clients are not eligible for LeverageLine financing?

The Dangers of Nonrecourse Stock Loans And How To Avoid Them

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

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

Portfolio Loan Rates – Decoding Their Meaning

Stock Portfolio Loans: The Essentials

OpLine is a Loan Against UPREIT Operating Partnership Unit Shares (OPUs). But What’s an UPREIT? What’s an OPU?

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

How Are ABN LeverageLine Interest Rates Determined?

The Role of Cash in a Securities-Based Line of Credit

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

Securities-based Financing – The Missing Piece in Most Financial Planning

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