Securities backed lending
Access to a credit line through securities-backed lending
For private clients looking to mitigate risk or capitalise on a new property purchase, securities-backed lending is a solution chosen by many when exploring the options of a fixed loan. Using your liquid assets, for example equities, bonds or investment funds as collateral, results in no reduction of your capital or forecast returns.
In pledging your securities as collateral, the private bank or HNW lender will advance a line of credit to you. Although there can be a cap on the loan to value (LTV) available, some private banks cap at 60% LTV for example, if you have publicly listed stock with high trading volumes in your portfolio, you may reach a maximum LTV of up to 80%.
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