Equities First Holdings Provides Help When Others Have Failed
Equities First can give financial help when lenders fail. As a result of Hurricane Katrina devastation in 2005, the City of New Orleans, Louisiana was affected and a group of Catholic nuns referred as Sisters of the Holy Family living in New Orleans was greatly affected with their several social service institutions destroyed or damaged. The Sisters sought commercial loans from various institutions without success due to unfriendly economic atmosphere in addition to the chaos in the area.
Fortunately, a financial advisor introduced the group to Equities First and after the Sisters got in touch with the company, they were able to secure a collateralized loan by part of the congregation stock portfolio. Based on its experience and potential to manage every transaction, EFH has unique parameters enabling it usually provide financial help where other institutions may not.
After terms agreement, the Sisters’ loan transaction with the EFH secured a sum of $2.8 million USD to assist in rebuilding the damaged facilities with the loan being collateralized by several positions. Concerning the impact of the share price, the Equities First proprietary hedging strategies aim to ensure that every market-associated practice fit in the historical security trends. Hence, the company does not lend or short sell shares that belong to borrowers to third parties. The principle has empowered investors to access non-purpose liquidity without putting pressure on stock costs and learn more about Equities First.
After the loan period, the entire collateral is taken back to the borrower’s account even if the shares greatly appreciate. For instance, in the Sisters’ Case Study above saw their loan increasing by an aggregate of 21%. One of the key EFH benefits in addition to non-recourse and non-purpose features is that all borrowers maintain all their economic rights of given collateral after ending of the loan cycle. Borrowers also reap when stock appreciates. For instance, the Sisters likewise reaped an economic benefit of almost $800,000 USD and more information click here.