Term Borrowing

Our Term Borrowing strategy is often the cheapest form of collateralized term financing available to most investors:

• Utilizes exchange listed box spreads to generate term financing.

• Typically available at an interest rate that is just [0.15% - 0.40%] higher than the yield of similar maturity treasuries.

• Can be collateralized with stocks, ETFs, bonds, treasuries, and other securities.

• Collateral used and type of account (Reg T vs Portfolio Margin) determine effective loan-to-value which usually ranges from [50%-90%].

• Taxed as capital losses and can be used to offset capital gains elsewhere in portfolio, or carried forward to future years.