Just like other types of securities-backed lending, single stock loans can be used for several reasons. Borrowers can use them to create liquidity, buy assets, or purchase a property. Single stock loans can also be used to reinvest to seek new investment opportunities and potentially higher returns than the original shareholding.
Increasingly, single stock loans are also a popular mechanism that allows owners of a very condensed portfolio to diversify investments and revenue streams. Often, individuals will use stock loans to expand their portfolio away from a single source of wealth to mitigate risk. At the same time, they can also benefit from exposure to different markets and financial instruments in the hope of generating better yields.
This was the case for our client who was looking to purchase an additional investment property in the US while taking advantage of a low LTV to mitigate any margin risk and benefiting from a reduced purchase price.
If you need access to capital, you can use a single stock portfolio as collateral. With a stellar reputation and track record delivering these highly complex transactions, Enness is one of the only brokers to operate in this part of the market.
After learning about your financing requirements, situation, requirements, and the stocks you'd like to secure the loan against, Enness will get straight to work. With a complete understanding of what you need, the team will approach lenders and negotiate on your behalf. The negotiations will encompass both the financial elements of the loan and the terms.
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