Stock Loan and Securities Finance Solutions - Rescure Your Mortgage with a HedgeLoan Solution

"Rescue" Your Mortgage with a HedgeLoan Stock Loan or Securities Loan

What's the HedgeLender Solution? It is the opportunity to finance your real estate downpayment or entire project with interest-only repayment while still retaining participation in your stock or securities portfolio using a Premier HedgeLoan® or Premier securities financing program. John Shareholder wants to buy a new house. He needs cash for a downpayment, but believes some good prospects are ahead for the company soon and doesn't want to liquidate his favorite stock position - now worth $150,000. The house costs $500,000 and he needs $100,000 for the downpayment. One solution: With a Premier HedgeLoan or Premier institutional securities finance solutions, he receives up to 85% (95% for certain government securities) of the value of the securities on a limited recourse basis. If his securities rise in value, that growth is his. 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.	Behind the Numbers: The good news? Either way, he keeps the capital he needed for financing his home purchase, while, his securities keep working for him in the marketplace. Example: He owns 15,000 shares of stock currently priced at $10 a share and puts them up for a Premier securities loan. With his portfolio worth $150,000, @ 85%, this yields $127,500 in cash to put towards his downpayment, with $27,500 left over for furniture or other expenses. Note that John's loan can be structured into an interest-only or interest+principal format for client convenience. Shares remain in your own account, never sold or traded, with a conventional lien-style structure. Please contact us here for your questions or to get a quick Premier HedgeLoan® or Premier securities loan quote.
Have other problems or challenges? Visit our other Solutions summaries.

What's the HedgeLender Solution?

It is the opportunity to finance your real estate downpayment or entire project with interest-only repayment while still retaining participation in your stock or securities portfolio using a Premier HedgeLoan® or Premier securities financing program.

John Shareholder wants to buy a new house. He needs cash for a downpayment, but believes some good prospects are ahead for the company soon and doesn't want to liquidate his favorite stock position - now worth $150,000. The house costs $500,000 and he needs $100,000 for the downpayment.

One solution: With a Premier HedgeLoan or Premier institutional securities finance solutions, he receives up to 85% (95% for certain government securities) of the value of the securities on a limited recourse basis. If his securities rise in value, that growth is his. 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.

Behind the Numbers:

The good news? Either way, he keeps the capital he needed for financing his home purchase, while, his securities keep working for him in the marketplace.

Example:

He owns 15,000 shares of stock currently priced at $10 a share and puts them up for a Premier securities loan.

With his portfolio worth $150,000, @ 85%, this yields $127,500 in cash to put towards his downpayment, with $27,500 left over for furniture or other expenses.

Note that John's loan can be structured into an interest-only or interest+principal format for client convenience.
Shares remain in your own account, never sold or traded, with a conventional lien-style structure.

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

Have other problems or challenges? Visit our other Solutions summaries.

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Note: No advice regarding the buying or selling of securities should be implied herein.
Scenarios are hypothetical and do not reflect the circumstances of any particular
company or client. HedgeLoan may not be used as a tax avoidance method.
Please consult with a licensed tax advisor for specific treatment of loan
proceeds under applicable federal/state tax law. Please read our disclaimer in full..

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