What collateral valuation means
Valuation is a credit exercise: what could positions fetch in stressed liquidation, net of gaps, halts, and transaction costs? Reference prices may be closes, VWAPs, or policy-driven conservative marks. Eligibility tiers remove names that fail liquidity screens. Guide: collateral valuation guide.
How it works in underwriting
Desks pull price history, ADV, exchange metadata, short interest, and issuer events. They stress portfolios and assign advance rates consistent with modeled loss. Ongoing marks feed maintenance. Compare how this interacts with LTV on LTV article and official rates & terms.
Key benefits of conservative marks
Fewer surprise calls in ordinary volatility because cushions are embedded upfront. Clearer negotiations when you understand tiers. Better cross-border hygiene when FX and venue differences are explicit.
Risks if you ignore valuation logic
Assuming broker screen equals borrowing base sets you up for shock at term sheet. Disputing marks without data rarely moves credit policy. Read risks alongside collateral schedules.
Use cases
Concentrated founders modeling realistic advances—executives & RSUs. Treasurers with listed sleeves—business owners. Funds and ETFs — see ETFs & funds.
Next steps
Send holdings via get started and compare structures on stock loans if you are choosing between liquidation and finance.