Diversify Your Investments with our Stock Loan or Securities Financing Tools

What's the HedgeLender Solution?

It is the opportunity to expand your range of investment possibilities while retaining ownership of your securities portfolio.

John Shareholder just spoke to his licensed advisor and was advised to purchase an oil and gas limited partnership. John had $150,000 of a stock he'd held for some time, but preferred not liquidate it if possible, losing all rights to any future value in the portfolio. The minimum investment in the gas partnership was $100,000 per unit.

With our a Premier securities finance or stock loan solution he could in effect be in "both places at once." He could obtain a limited-recourse loan at up to 85% of the market value of the stock or other securities. If it rose in value, he could participate in the upside, assuming it was structured with no cap.. If structured with an option and for whatever reason he was forced to default, he could exercise his right to surrender the shares and would owe nothing more unless the exercised option was insufficient to cover the remaining loan liability. Regardless, he would own at least $100,000 in the oil/gas partnership without having had to sell his securities first. At all times the securities would remain in the client's name, title, and in their own account.

Behind the Numbers:

Example:

• $150,000 @ 85% advance yielded $127,500 to put into his oil and gas project.
  
  
• Using his $150,000 stock position for a stock loan yielded more than the $100,000 needed to enter into the non-marginable investment. At the end of five years if it has performed at a minimum of 8% in this example, he would have gained 8% on his $150,000 position (minus interest) paid at monthly LIBOR + 4 - approximately 4.35% in third quarter of 2009) from the oil and gas project.

Please contact us here for your questions or to get a quick Premier HedgeLoan® or Premier securities loan quote.

Note: Example is for illustration purposes only. Does not imply and should not be taken to suggest any actual performance for any particular investment or any recommendation to purchase any form of security. Taxes may apply; please consult with a licensed tax advisor prior to undertaking any Premier HedgeLoan or conventional financing.