Stock Criteria for HedgeLoan Stock Loans

Summary:

Best HedgeLoan rates and terms come to those stocks with good strong and steady volume, and prices over $5/share. However, there is a wide range of criteria and conditions, and many shares under $5 will get excellent terms and rates as will some stocks with erratic volume. Click Here for the Yahoo! Finance page to check on your stock ticker before requesting your loan quote.

Hedged portfolio loans that hedged through some combination of trading, funds/credit finance, or private investment-grade derivatives contracts require stocks that are free-trading with no liens or other restrictions. For our purposes, we aren't concerned with the underlying company so much as simply how the stock itself has been performing over a reasonable length of time. Yahoo and many other online databases make this information available for free.

HedgeLender can develop a HedgeLoan program for most stocks. However, for the best rates and terms, stocks should not have huge swings in trading activity or price over the prior 90 days (approximately). Strong and steady volume is highly prized in the options-writing world as it allows some predictability baselines.

Use sites like Yahoo!Finance or MarketWatch or Reuters to determine the "historical" prices and trading volumes for your stocks and you will have a good idea as to the attractiveness of your stock as a hedgable commodity. Do you see a pattern of unusual, huge swings (i.e., volume of 2,000 one day, and 150,000 the next, then back to 15,000) ? If YES, your interest rate is likely to be higher and your loan program choices fewer. If NO -- if these numbers show relatively smooth movements up and down, you are more likely to get a lower interest rate and more loan program choices. Is the price above $5 a share consistently? If yes, you'll get a quote with maximum LTV; if not, you may get a quote of somewhat lower loan-to-value.

Note that we will provide a precise analysis when you apply or if you send us an email or phone us. There is never any obligation in doing so, either. You may also choose to call us during business hours (Eastern Time) at 1-800-244-7616 at your convenience, as the best way to assess stock eligibility for HedgeLoan financing is a direct study of the stock collateral itself.