Revised 8/25/08
Restricted Stock Loans have become harder to get . . . things are changing in the financial world, and that means products that were here are now gone, or unrecognizable. I'll do my best to accomodate any loan that you are looking for, but on the restricted stock, you have few options.
What kind of stocks do you own?
These answers determine the stock loans you may qualify for and the offers you'll receive. Free-trading securities (or six-month "seasoned" restricted stocks) with steady prices and strong trading volume for the past four weeks, and a larger ($750K+) stock portfolio with blue chip stocks will give you a full range of choices with as many as ten or more stock loan offers across all HedgeLoan categories.
But, if your stocks are thinly traded or have a relatively small portfolio, you may receive fewer offers.
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Until recently, shareholders of publicly traded companies had only two real options for accessing equity vested in their stock portfolio. Investors could use their stock(s) as collateral to obtain very limited bank or broker loans.
These loans didn’t typically allow for a very high loan to value and usually carried full recourse terms The owner/investor could also turn to their brokerage for very restrictive margin loans which required strong credit worthiness, were limited by size or loan to value, and also carried full recourse provisions and were subject to margin maintenance and Federal house calls.
Owners of restricted stocks are limited in options if they wish to sell or access equity using their interest in their company owned stock.
The stock loan industry has now matured and can deliver a wide variety of lending solutions to many of the most common problems associated with accessing stock equity & liquidity.
Contemporary products provide borrower(s) with confidence by offering higher loan to values with limited-recourse alternatives while providing the owner with a hedged down side risk. Stock loans are an ideal way for the investor to be in and out of the market simultaneously.
In general, stock loans allow the borrower
- to keep the stock(s) in their own name,
- do not require personal credit checks,
- require no additional collateral (other than the stock(s) pledged) and
- are an excellent way for the investor to hedge in the event of a market decline.
You can call me for a quote - I just need to know the stocks you're considering the loan against - Traci Gregory, 770-333-4404, or send me an email - traci@pallasfinancier.com
