Borrowing Made Easier

Advisory and broker/dealer clients who want to borrow money can now use separately managed accounts (SMAs) as collateral for lines of credit, if their advisor is a customer of Pershing. The loans are available to clients of Pershing’s qualified introducing broker/dealers, and clients of independent RIAs who are customers of Pershing Advisor Solutions.

Calling the ability to use SMAs as collateral an enhancement to its LoanAdvance product, Pershing, a subsidiary of Bank of New York, said in an announcement that while these are not margin loans, Pershing will lend customers “up to 70% of the market value of qualified equity, mutual fund, and investment-grade corporate or municipal bond securities,” and “up to 90% of the market value for U.S. treasury securities.