Securities Lending and Administration
Balance
In times of uncertain economic conditions and political upheavals, many investors are in situations where they are asset rich and cash poor. A strong balance sheet is not an immediate replacement for cash liquidity when hew investment opportunities present themselves or an investor needs cash to finance a substantial purchase for his or her business or personal use. To generate cash, an investor can liquidate securities or other assets, but those transactions will expose the investor to unwanted capital gains tax considerations, and other potentially adverse consequences.
Large Quantity of Stock
Moreover, if an investor needs to sell large quantities of securities assets, that sale is often not possible within a short period of time. If a new investment opportunity or pending purchase is a fleeting event, the sale of a large quantity of stock may not be completed until after the investment opportunity is no longer available. Many investors are also leery about selling a large block of securities due to concerns over the effects of that sale on the market price of the underlying stock.
Debt Origination Services
Jakob Fugger's debt origination services, which include its novel collateralized nonrecourse stock lending program, are the preferred solution to liquidity and block sale issues that are inherent in an investor's ownership of large amounts of publicly-traded securities. Our debt origination specialists have modeled Jakob Fugger’s debt origination services after the best-in-class securities lending services that are utilized by large investment banks to derive revenues from static securities holdings.
Unlike most other stock lenders, we originate and fund stock loans with backing from our own internal resources, For investors that have an extremely high level of knowledge and sophistication in the securities markets, we also facilitate securities lending and block trade transactions. *
Rather than submit to reporting or regulatory restrictions that might limit how Jakob Fugger serves the needs of its client base, we have organized our operations as a private entity that is limited to conducting operations exclusively in jurisdictions that respect our private status. All of our transactions with our clients are strictly private and confidential. In the context of those transactions, we offer no tax, accounting, or legal advice or recommendations. We understand that our investor clients know that they should procure advice from their tax, legal, financial, and accounting resources as to any product or service that involves debt origination or any transactions with publicly-traded securities.
* Jakob Fugger’s nonrecourse collateralized stock loan program and its related securities lending and block trade transactions are only offered and made available to sophisticated investors in jurisdictions that do not preclude or excessively regulate private transactions between accredited investors. Jakob Fugger does not maintain licenses or securities trading and advisory authority in any jurisdictions but maintains its status as a private lending and financial entity to be able to offer the most flexible terms in securities transactions without regulatory interference. Investors are hereby instructed to check with their financial advisors as to the limits or restrictions in stock loan transactions in the jurisdictions in which they reside or conduct their businesses. Please leave this website immediately if you determine that you are subject to the laws, rules, and regulations of one of those jurisdictions, or if you are unable to self-certify as a high-net-worth accredited investor. All transactions involving publicly-traded securities can involve a high degree of risk, including the risk of all or substantially all of the value of the underlying securities in any transaction.
