Direct lender since 2007
Global clients
195+ countries · 80+ exchanges
High-value transactions
Private & confidential
Typical mandate range $1M–$1B+ · Qualified clients
Risks to understand
A balanced view helps you decide whether securities-backed borrowing matches your situation.
Market risk
Your collateral can lose value after you borrow. That does not change the amount owed unless your agreement ties balance to mark-to-market events. Stress-test a drawdown scenario before you commit.
Collateral risk
Single-stock concentration increases the chance of sharp moves. Lenders may haircut concentrated positions more aggressively.
Maintenance & remedy events
Many structures include collateral maintenance concepts: if value falls below a threshold, you may need to post more collateral, repay partially, or face acceleration. Terms differ from retail margin but the economic idea is similar—read the fine print.
When this may not be the right fit
- You cannot service interest from income or other assets
- You need certainty through severe bear markets
- Your shares are illiquid, restricted, or thinly traded
- You are uncomfortable pledging long-term holdings
Frequently asked questions
If you default or breach covenants, remedies may include liquidation of collateral subject to your agreement. In some structures, remedies are limited to collateral; in others, obligations may be broader. Read your documents carefully.
Declining collateral value can trigger additional collateral calls, paydown requirements, or rebalancing—similar in spirit to margin maintenance, though exact mechanics vary by lender and product.
All lending involves risk. Safety depends on advance rate, diversification, your cash flow, and stress tolerance. If you cannot tolerate collateral loss or volatility, other tools may be more appropriate.
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