Securities Loan Features Explained

We Listen. Then We Find Solutions. Our multi-featured, customizable securities financing programs can be applied to many different objectives and challenges What do you own? What are your priorities? Your answers these questions will determine the stock loan or other securities financing you qualify for and how many/what kind of quotes we can deliver. If you own free-trading securities with steady prices and strong trading volume over the preceding four weeks, and your portfolio is worth more than $1M made up primarily of blue chip stocks — you'll probably be presenting us with a low-volatility, high value portfolio, and you will have a full range of loan features to choose from. On the other hand, if you only have thinly traded stocks or you have a relatively small portfolio, you will probably have fewer choices. Nonrecourse securities finance. Features your securities portfolio may qualify for in a loan are many and include dividend pass-through or credit against interest; interest paid or accrued; stocks in your own account and never sold or traded; lender participation in upside choices for more flexible terms with weaker stocks; voting rights (direct or via lender); international stock considerations; securities swaps while serving to secure loan for greater client choice; prepayment with/without penalty; no margin calls; limited calls in exchange for higher LTV; stock options execution cost advanced; , margin loan payoff price advanced prior to loan execution; and many other options. Our Premier Securities Loans - No Change of Title, Name When your portfolio is eligible for the maximum security, features, and an option-hedge that come with Premier, this may be your choice. Premier HedgeLoan® Our Premier HedgeLoan is the first and only securities-collateralized loan to stay in your own account, your own name and title, never sold or traded, with the regular account statements you normally receive from any bank or brokerage, and standard SIPC insurance. This is a loan where we bring the pre-existing brokerage relationships of a large equity fund to our limited-recourse (i.e., nonrecourse) HedgeLoan and the end product is entirely in the hands of top institutional management. LTV up to 95% for Treasury bills and some municipal bonds, 85% for other securities, and a licensed personal account advisor assists each client with honing their loan precisely to their requirements. Pay off any time with no penalty. Interest rates from monthly LIBOR plus 2 (currently around 4.35%.) Freedom to pay quarterly interest only, or to pay principal down as well. Superb features and benefits in every respect, our "gold standard" loan. Prepayment any time without penalty, full upside appreciation to borrower, additional line of credit possible for securities that rise consistently in value over time (at discretion of the lender). All of the benefits of HedgeLoan with the best security in the business bar none. The Premier HedgeLoan program is but one part of HedgeLender's overall Premier institutional stock loan and securities finance program, which includes a broad range of securities loan types all of which ensure that the collateral securities remain in the client's own institutional account, name and title, never sold or traded, visible and available online 24/7.
Our Loan Services Requiring Transfer of Title HedgeLender offers a range of other loan services in its effort to ensure maximum borrower choice. Unlike our Premier loan programs, these programs require that your securities move to the lender's custody prior to loan closing and funding. Please consult with a HedgeLender staff member for the latest status of these programs. We offer several other loan services for those who do not qualify for our Premier program but who nevertheless seek a securities loan. We currently have a stock loan, for example, that allows the borrower to enjoy all of the upside growth of their portfolio over time at a up to 85% loan-to-value standard, with interest that can accrue into a balloon payment at the end, when the collateral shares may have risen in value; or paid quarterly interest-only with no margin calls at any time for any reason. We also offer a stock loan that instead of having all upside growth (appreciation) go to the account of the client, has the upside (growth) capped at a mutually agreed-upon percentage. This is a "lender participation" style loan where the client trades off better loan-to-value (or sometimes interest rates) for some of the future growth in the portfolio while it serves as collateral for the loan (if such growth actually occurs: there are of course no guarantees with the stock market). Limited recourse, no-margin-call stock loan features are standard. Another service HedgeLender makes available to our clients is a loan for strong stocks with an LTV of up to 75% and competitive interest, plus the right to pay loan off with payment of first year's interest. With this program, a borrower may pay down interest or principal monthly, quarterly, or semi-annually, or wrap it in a balloon at the end. All growth in portfolio goes to the client, and there are no margin calls. HedgeLender also offers a service that features relatively low interest offset by lower loan-to-value and loans against stocks as well as loans against selected other securities that are typically weaker in volume or price, including "pink sheets" stocks. These loans are always capped, but the caps are relatively large before the loans become callable.

We Listen. Then We Find Solutions.

Our multi-featured, customizable securities financing programs
can be applied to many different objectives and challenges

What do you own? What are your priorities?
Your answers these questions will determine the stock loan or other securities financing you qualify for and how many/what kind of quotes we can deliver. If you own free-trading securities with steady prices and strong trading volume over the preceding four weeks, and your portfolio is worth more than $1M made up primarily of blue chip stocks — you'll probably be presenting us with a low-volatility, high value portfolio, and you will have a full range of loan features to choose from. On the other hand, if you only have thinly traded stocks or you have a relatively small portfolio, you will probably have fewer choices.

Nonrecourse securities finance. Features your securities portfolio may qualify for in a loan are many and include dividend pass-through or credit against interest; interest paid or accrued; stocks in your own account and never sold or traded; lender participation in upside choices for more flexible terms with weaker stocks; voting rights (direct or via lender); international stock considerations; securities swaps while serving to secure loan for greater client choice; prepayment with/without penalty; no margin calls; limited calls in exchange for higher LTV; stock options execution cost advanced; , margin loan payoff price advanced prior to loan execution; and many other options.

Our Premier Securities Loans - No Change of Title, Name
When your portfolio is eligible for the maximum security, features, and an option-hedge that come with Premier, this may be your choice.

Premier HedgeLoan®
Our Premier HedgeLoan is the first and only securities-collateralized loan to stay in your own account, your own name and title, never sold or traded, with the regular account statements you normally receive from any bank or brokerage, and standard SIPC insurance. This is a loan where we bring the pre-existing brokerage relationships of a large equity fund to our limited-recourse (i.e., nonrecourse) HedgeLoan and the end product is entirely in the hands of top institutional management. LTV up to 95% for Treasury bills and some municipal bonds, 85% for other securities, and a licensed personal account advisor assists each client with honing their loan precisely to their requirements. Pay off any time with no penalty. Interest rates from monthly LIBOR plus 2 (currently around 4.35%.) Freedom to pay quarterly interest only, or to pay principal down as well. Superb features and benefits in every respect, our "gold standard" loan. Prepayment any time without penalty, full upside appreciation to borrower, additional line of credit possible for securities that rise consistently in value over time (at discretion of the lender). All of the benefits of HedgeLoan with the best security in the business bar none.

The Premier HedgeLoan program is but one part of HedgeLender's overall Premier institutional stock loan and securities finance program, which includes a broad range of securities loan types all of which ensure that the collateral securities remain in the client's own institutional account, name and title, never sold or traded, visible and available online 24/7.

stock loans - HedgeLender non-recourse stock loan solutions

Our Loan Services Requiring Transfer of Title
HedgeLender offers a range of other loan services in its effort to ensure maximum borrower choice. Unlike our Premier loan programs, these programs require that your securities move to the lender's custody prior to loan closing and funding. Please consult with a HedgeLender staff member for the latest status of these programs.

We offer several other loan services for those who do not qualify for our Premier program but who nevertheless seek a securities loan. We currently have a stock loan, for example, that allows the borrower to enjoy all of the upside growth of their portfolio over time at a up to 85% loan-to-value standard, with interest that can accrue into a balloon payment at the end, when the collateral shares may have risen in value; or paid quarterly interest-only with no margin calls at any time for any reason.

We also offer a stock loan that instead of having all upside growth (appreciation) go to the account of the client, has the upside (growth) capped at a mutually agreed-upon percentage. This is a "lender participation" style loan where the client trades off better loan-to-value (or sometimes interest rates) for some of the future growth in the portfolio while it serves as collateral for the loan (if such growth actually occurs: there are of course no guarantees with the stock market). Limited recourse, no-margin-call stock loan features are standard.

Another service HedgeLender makes available to our clients is a loan for strong stocks with an LTV of up to 75% and competitive interest, plus the right to pay loan off with payment of first year's interest. With this program, a borrower may pay down interest or principal monthly, quarterly, or semi-annually, or wrap it in a balloon at the end. All growth in portfolio goes to the client, and there are no margin calls.

HedgeLender also offers a service that features relatively low interest offset by lower loan-to-value and loans against stocks as well as loans against selected other securities that are typically weaker in volume or price, including "pink sheets" stocks. These loans are always capped, but the caps are relatively large before the loans become callable.