Source: Bank of New York
Pershing LLC, a subsidiary of The Bank of New York Company, has launched an enhanced version of LoanAdvance, its securities-based consumer lending tool that provides access to lines of credit at competitive interest rates.
The enhanced version of LoanAdvance provides Pershing's customers and their clients with the ability to increase their current borrowing power by pledging assets held in separately managed accounts as collateral for their loans. This new capability allows investment professionals and independent registered investment advisors to manage their clients' lending needs more efficiently and effectively, since it eliminates the need to liquidate securities or move assets into separate collateral accounts.
Through LoanAdvance, Pershing's customers and their clients have the flexibility to borrow up to 70% of the market value of qualified equity, mutual fund, and investment-grade corporate or municipal bond securities, as well as up to 90% of the market value for U.S. Treasury securities. LoanAdvance cannot be used to purchase securities.
LoanAdvance is available to Pershing's qualified introducing broker-dealer customers and the clients they serve as well as to qualified independent registered investment advisors and their clients through Pershing's affiliate, Pershing Advisor Solutions LLC.
John Iachello, chief operating officer of Pershing Advisor Solutions, said, "LoanAdvance's new separately managed account capabilities further demonstrate our continued commitment to provide independent registered investment advisors with a broad array of wealth management solutions that address the unique needs of their high-net-worth clients."
Ron Fiske, managing director of the product management and development group at Pershing, said, "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."
LoanAdvance's new separately managed account capabilities further enhances Pershing's ability to provide its customers and their clients with an extensive suite of wealth and cash management offerings, which include securities-based lending products, asset management account capabilities and private client services.