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Industry Spotlight > Broker Dealers

Borrowing Made Easier

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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.

“These enhancements will provide our introducing broker-dealer and independent registered investment advisor customers with a flexible solution that will help them meet their individual clients’ liquidity and financing needs,” says Pershing’s Ron Fiske, managing director of the product management and development group.


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