Term Borrowing
Overview
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.
Features
| Minimum Investment | $250,000 |
| Inception Date | 4th October 2024 |
| Management Fee | First $1m: 0.20%; Above $1m: 0.10% |
| Performance Fee | None |
| Holding Period | None |
| Structure | SMA |
Performance Snapshot
We do not publish performance for this strategy since performance is dependent upon term of financing
Indicative Borrowing Rates (as of 31st May 2026)
Note that the indicative borrowing rates above are based on a daily compounded rate of interest and ACT/360 day count convention.