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Your investments as collateral for a loanStocks or other investments can also be used to get a secured personal loan. Loans that use investments as collateral are often called securities-based loans or stock-based loans.
Investment management agreements (IMAs) are legal documents that give investment managers the authority to manage capital on behalf of investors. They detail the terms and conditions under which a client will invest in a shared vehicle while agreeing to pay investment management service fees and direct expenses.
Collateral management is the process of two parties exchanging assets in order to reduce credit risk associated with any unsecured financial transactions between them. Such counterparties include banks, broker-dealers, insurance companies, hedge funds, pension funds, asset managers and large corporations.
Collateral Portfolio means on any date of determination, all Pledged Obligations and all Cash held in any Borrower Account (excluding Eligible Investments and Cash constituting, in each case, Interest Proceeds).
SBLOCs, also referred to as securities-based lending or portfolio financing, use your taxable brokerage account as collateral to back a revolving line of credit. This means you can choose how much to borrow and pay back without having set payments over a defined period of time.