You’re probably one of those benefiting quite a bit from rising stock market values over the past two years. If you need liquidity, you may even be thinking that the time to cash out is upon you. Well, good & fine if it works best for you to sell. But suppose you are one of those who has seen a rise in their stock portfolio but does not want to
Visit our website for more about our LeverageLine stock loan program here. As you know, one of the reasons that A. B. Nicholas is the leading private conduit to institutional licensed stock-secured lending is that we are always focused on compliance and on improving the lending experience for our clients. To that end, we have implemented a new rule for all agents when submitting clients to A. B. Nicholas for
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
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”
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
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
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
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
How securities and cash figure in a LeverageLine securities-based line of credit.
Securities-based Financing – The Missing Piece in Most Financial Planning