Equities First Holdings Sees Growing Demand for Stock Loans
Equities First Holdings’ Al Christy Jr. watches attentively on how the various stocks he holds as collateral performs. Not that he is a loan shark, but a stock lender with a great vision. The uncommon premise is the market investors who require quick funding transferring of shares.Equities First Holdings lends its customers to even 80 percent of their stock value, although in many cases the amount rarely surpasses 60 percent.
Extra terms for the advances incorporate appealing 3 to 5 percent interest rates within a period of three years. The platform and trading model that the CEO has formed since establishing of Equities First in 2002 has empowered him to finish more than 400 exchanges and oversee approximately $40 million in resources. They additionally have given him the way to work from the corner office in the 30th floor of Market Tower; the place he has a bird’s-eye perspective of Lucas Oil Stadium & Falcon Nesting on the skyscraper.
“I needed to be in the financial district center,” said the 47-year-old Christy. Huge Vast business firms, for example, Merrill Lynch, Smith Barney and Goldman Sachs, issue stock advances, however normally at higher financing costs, running from 6.5 percent to 9 percent. Above that, Securities & Exchange Commission including the Federal Reserve guidelines constrain them to loaning not more than 50 percent of someone’s stock value.
On the other hand, Christy alludes to EFH as an independent organization that is not subject to similar restrictions. His customers, with 50% of them forming repeat clients, are both institutional andretail investors who may require a credit for reasons going from paying off a private home loan to diversifying a company’s property. However, Christy acknowledged that not all are wealthy and loans generally range from $100,000 – $8 million. The credits are usually secured through stocks traded as pink sheets, on Dow Jones or over the counter.