Securities lending business allows the owners of the shares to transfer the shares to a lender temporarily. In return, the Lender transfers cash to the owner/borrower as collateral. Securities lending service is an established activity in the financial markets. It helps to provide liquidity to the market and brings extra returns to investors, who ensure the lending of securities.
Advantages of Securities Lending Business
The benefits of securities lending business are impeccable for lenders and borrowers. Being common among funds, securities lending solution is a comparatively low-risk way for investors to unlock the potential of their portfolio.
- This process prevents the need to sell securities. It helps avoid taxable events for investors.
- It also ensures the investors' uninterrupted continuation of the investment strategy.
- Security-based lending, or SBL, offers smooth access to cash within a few days to comparatively lower interest rates. It also allows a great deal of repayment flexibility.
- SBL proves most effective in times of situations that require a significant amount of cash quickly. For bridge loans or emergencies, this lending is comparatively easy.
- For the borrower, it helps create a lucrative income stream without experiencing any additional risk.
- Silo's Customized Lending is at the forefront of securities lending solutions, providing bespoke financing solutions that unlock substantial liquidity and offer high-value, short-term financing options
Agency Securities Lending Solutions
Securities lending solutions help unlock significant liquidity and ensure short-term, high-value finance. Explore this excellent financial solution to unveil the perfect opportunity for you.
- Securities-backed Financing Solution: Make your transaction stress-free and easy with the negotiating securities-backed financing solution tailored to your needs.
- Lombard Loan Solution: This solution helps you purchase a home, diversify risk, or access capital without selling securities. Get the Lombard loan solution today.
- Single Stock Loan Solution: The single stock loan solution helps you access capital when you need a single stock portfolio as collateral.
Who we serve
Our clients are the best leaders in their fields. We serve them with excellent, tailored solutions:
- High Net-worth Individuals: We help high net-worth individuals make passive income through our securities lending solutions, without the need to sell securities.
- Private Banks & Custodians: To meet the needs of the sophisticated clients, the private banks and custodians need our securities lending solutions.
- Digital Wealth Managers: Our prime securities lending solutions help digital wealth managers explore advanced investment options.
- Asset Managers: Our classified strategies help asset managers reach new channels and access investment solutions.
Why Silo for Securities Lending Solution?
Silo Group helps its clients to secure excellent solutions for securities lending services. We have an experienced team to help you gain proper securities lending solutions. We implement excellent investment strategies to help you comply with your capital requirements.
Skillful Risk Management:
Our team is skilled in developing strategies unmatchable to your needs of securities lending solution. Our skillful risk management enables us to give you excellent securities lending solutions for meeting your capital requirements.
Proprietary Technology:
We are enriched with the best proprietary technologies to help you gain apt solutions. Our technologies utilize AI and involve an application or tool that belongs to an enterprise.
Robust Assessment of Borrowers:
Our team develops robust credit risk assessments for borrowers. These assessments help you evaluate the borrower’s creditworthiness and learn about specific risks, credit history, and income stability.
Loan-to-Value (LTV) Ratios:
Incorporating specific Loan-to-Value (LTV) ratios and interest rates can help illustrate the competitive edge of securities lending solutions. It’s important to note that these figures can vary widely based on market conditions, the type of securities being lent, the borrower’s creditworthiness, and the lending institution’s policies. Here are some generalized bullet points that can be adjusted to fit the specific offerings and market positioning of a securities lending service like Silo Group’s:
Competitive LTV Ratios:
Equities: Up to 50-70% LTV, allowing investors to leverage their stock portfolios efficiently while managing risk exposure.
Attractive Interest Rates:
- Securities-Backed Loans: Interest rates can be significantly lower than unsecured lending options, often ranging from 3% to 6%, making them an attractive source of liquidity.
- Lombard Loans: Typically offer rates comparable to or slightly higher than securities-backed loans, reflecting the slightly increased risk from the lender’s perspective.
- Single Stock and Pre-IPO Stock Loans: Given their higher risk, the interest rates for these loans might be higher, ranging from 6% to 12%.
Flexible Repayment Terms:
Understanding that each investor’s needs are unique, our securities lending solutions come with flexible repayment terms, allowing borrowers to tailor their repayment schedule to fit their financial planning.
Market-Leading Conditions:
Our offerings are designed to be competitive in the current market, with terms that are regularly reviewed to ensure they remain among the most attractive available.
Tailored Solutions:
Recognizing that one size doesn’t fit all, we offer bespoke securities lending solutions. Our team works closely with clients to understand their needs and structure terms that align with their goals. The above provides a snapshot of potential LTV ratios and interest rates that could be competitive in the market. It’s vital for participants to consult with their financial advisor or the lending institution to understand the specific terms available to them, as these can fluctuate based on evolving market conditions and regulatory landscapes.
