Address:  10a, Rue du Château d'Eau, Leudelange, 3364, Luxembourg     Phone: +352 20882760      Email: contact@luxfin.co.uk

Loans Against Securities

Fully Paid Securities Loan Program

Enhance Your Cash Flow and Liquidity

When you invest in a stock, you typically expect to make returns in one or two ways: dividends and/or profit from appreciation when you sell. But whether you are a long-term investor or seeking extra income in the short-term, you can enhance your portfolio with another option, our Fully Paid Securities Lending Program (“FPSLP”).

While Fully Paid Securities Lending Program will be new to many shareholders, the business model is not. Formerly the bastion of institutional books of business in a securities-lending role, the FPEL concept is now being employed to everyone who has securities and would like to earn income by lending their securities.

The concept and business goals behind traditional securities lending practices are relatively simple. Historically, it has been a practice adopted by major banks and brokerage firms to leverage additional income on their equity long-only.

The strategy is simple yet lucrative, the investor (the lender) offers a temporary loan of a securities to a borrower (Luxembourg Capital Partners). The loan generally has an intermediary who facilitates the transaction (broker/lending agent/custodian) by acting as custodian over the shares. An agreement on the terms of the loan, the interest rate paid, and how the lender is paid is all captured into the loan agreement.

The Fully Paid Securities Lending Program program provides you with the opportunity to earn extra income on your fully paid stocks. While shares are on loan, you will be paid an income that is accrued daily and credited to your account monthly.

What is Securities Lending?

Securities lending is the temporary transfer of securities on a collateralized basis. The beneficial owner (lender) temporarily lends out the securities to a borrower, which is required to return the security at an agreed date in the future (commonly referred to as a term loan). The borrower will pay interest monthly interest to the lender (you the client).  Voting rights are temporarily assigned over to borrower (Luxembourg Capital Partners) and in some cases we can reassign them back to you the lender.

The lender maintains an economic interest in the security on loan and therefore is still exposed to the price fluctuations of the security since they are still physically held in lenders (your) custodial account. You the lender will also receive all dividends which the issuer of your securities may pay out.

What terms are available?

(Luxembourg Capital Partners) offers flexible terms. Loan your equites based on your personal investment plan and time horizon.
Loans are for fixed term and you will earn the same income for the length of your loan, regardless if your securities depreciate.
Choose a term that works best for you, estimated current interest earned below.

1 Year

2 Year

3 Year

4 Year

5 Year

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Luxembourg
10a, Rue du Château d'Eau
Leudelange
3364, Luxembourg
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