Most of us need additional liquidity at some point to cover short or medium-term needs. You may be exploring a new business opportunity or have your eye on your next property. Using your existing portfolio as collateral for a Lombard loan can keep interest costs down. Giving you a cost-effective solution as well as the flexibility you require.
Securities-backed financing allows you to monetize your existing assets, so you enjoy greater flexibility. You can make investments and exploit market opportunities without selling your assets; these serve to secure your financing.
Securities-backed financing at a glance
Securities-backed financing at a glance
- Financing secured by pledging assets
- Amount, currency and term tailored to your needs
- Attractive terms and conditions as the financing is secured by your assets
- Quick and easy access to capital
What you can do with securities-backed financing
What you can do with securities-backed financing
- Access cash: securities-backed financing gives you liquidity no need to sell your existing investments.
- Grasp investment opportunities: take advantage of good opportunities with securities-backed financing you can react quickly, without having to restructure your portfolio.
- Optimize returns: investing using securities-backed financing helps you optimize the income potential of your portfolio.
- Increase security: with securities-backed financing you can diversify your investments and hedge currency risks.
In addition to Lombard loans primarily pledged against diversified portfolios, our structured lending facilities provide you with greater flexibility across a range of accepted collateral types, structures and conditions. UBS can also help you choose and implement structured lending facilities tailored to your needs and financial goals.
There is a wide range of collateral that might be used for structured lending:
Single stock positions:
Many entrepreneurs and senior executives have wealth tied up in single stock positions. UBS may lend against those positions to unlock short- to mid-term liquidity.
Concentrated equities, bonds or hedge fund portfolios:
Some investors hold bulk positions in equities, bonds and/or hedge funds. UBS offers tailored financing solutions to lend against those assets.
Private equity limited partnership interests:
Private equity fund investments typically have long investment horizons of several years and rarely have a secondary market. UBS may lend against your private equity fund investments to free up value for future capital calls, investment diversification strategies as well as general personal and corporate purposes.
Unlisted equity investments:
You may hold a substantial stake in an unlisted stock and have a plan to sell your holdings, fully or partially. UBS may lend against your strategic stakes in unlisted shares ahead of a liquidity event.
Additionally, UBS can provide extended financing solutions through
- risk hedging strategies
- loans with recourse to strong financial counterparties
- complex credit structures
Choose the best fit for convenient, attractively priced credit
Securing your borrowing against eligible investments in your portfolio means your interest charges may be significantly lower than with unsecured forms of borrowing. Collateral that we generally consider includes (but is not limited to) equities traded on major global stock markets, investment funds, corporate and government bonds and UBS cash deposits.
Keep your existing assets and be flexible
Avoid having to sell any of your existing portfolio while enjoying quick and simple access to funds.
Tailor your borrowing in multiple currencies
We'll tailor your loan amount, currency, and timeframe according to your needs. Our credit options are also available in all major currencies to match your needs.
Pay interest only on what you borrow
Interest will be calculated on your daily loan balance and charged either every three months or six months, as agreed. You also have the option to capitalize your interest if eligible, meaning you may be able to add it to the loan amount.
Enjoy full transparency
All costs associated with your loans are clearly defined up front so you know exactly where you stand.
Risk considerations
Risk considerations
The price and value of investments and income derived from them can go down as well as up. You may not get back the amount originally invested. Currency and interest rate changes can significantly reduce expected returns and asset values. If the value of your securities against which a loan is secured falls below a certain limit, you may be asked by UBS to furnish additional collateral or to repay the loan in part or in full. If you are unable to meet this obligation UBS may liquidate some or all of the investments used to secure the loan.
