best bank for loan against stocks

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UndividedNomad

New member
Hi all,

Let's suppose you have fix-figures invested in diversified stocks (World ETFs). EU passport. what would be the best bank to get a loan against this portfolio?

To my knowledge:
-> brokers offer this via margin loans. IBKR only allows margin trading, but no margin loans for Europeans. LTV until 25-30% is realistic. Viable solution is DEGIRO but interest rate varies between 3% and 4%
-> take out a lombard loan. LTV much better at up to 70% but higher interest rates. CIM Banque in Switzerland offers this. looking for any other bank offering better conditions.

do you know any other alternatives?

thanks
 

Martin Everson

Offshore Retiree
Staff member
Mentor Group Gold
Elite Member
The LTV will vary between banks and will depend on the quality and liquidity of your ETF and also importantly the loan currency. For example SC in Dubai offer 0% on Euro but LTV you need to work out with them as not sure they will accept ETF's. Reason being they get retro fees from Mutual Funds annual fees which offsets the lack of income from the loan itself.

See my post below:


P.S Lending rates for currencies in link have gone up except EURO so check the website for up to date information.
 

Gediminas

Offshore Tax Advisory
Mentor Group Gold
Commercial Service
Business Angel
Hi all,

Let's suppose you have fix-figures invested in diversified stocks (World ETFs). EU passport. what would be the best bank to get a loan against this portfolio?

To my knowledge:
-> brokers offer this via margin loans. IBKR only allows margin trading, but no margin loans for Europeans. LTV until 25-30% is realistic. Viable solution is DEGIRO but interest rate varies between 3% and 4%
-> take out a lombard loan. LTV much better at up to 70% but higher interest rates. CIM Banque in Switzerland offers this. looking for any other bank offering better conditions.

do you know any other alternatives?

thanks

Hey,

I might be able to get you such a loan from Pacific Private Bank.

Drop me an email to explore it further.
 

UndividedNomad

New member
Hey,

I might be able to get you such a loan from Pacific Private Bank.

Drop me an email to explore it further.
Great, I will PM you.

Any decent bank offers Lombard loans
Great, if you can share any names of banks that can offer this this would be great. Also if you can share their terms. Ideally looking for at least 60% LTV with an investment line of credit (interest paid only on what is borrowed) sub 3% interest rate, with collateral backed by World ETFs. and can work with corporate accounts. thanks
The LTV will vary between banks and will depend on the quality and liquidity of your ETF and also importantly the loan currency. For example SC in Dubai offer 0% on Euro but LTV you need to work out with them as not sure they will accept ETF's. Reason being they get retro fees from Mutual Funds annual fees which offsets the lack of income from the loan itself.

See my post below:


P.S Lending rates for currencies in link have gone up except EURO so check the website for up to date information.
Thanks, I've checked it out, it is a good read.
 

JohnnyDoe

Mentor Group Gold
Great, if you can share any names of banks that can offer this this would be great. Also if you can share their terms. Ideally looking for at least 60% LTV with an investment line of credit (interest paid only on what is borrowed) sub 3% interest rate, with collateral backed by World ETFs. and can work with corporate accounts. thanks
Coutts and CS do that, LTV was higher with index ETFs as collateral when I obtained the loans but really any bank should be able to offer this service.
 
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