Term Borrowing
Overview
Our Term Borrowing strategy is often the cheapest form of collateralized term financing available to most investors:
Utilizes exchange listed instruments to generate term financing.
Typically available at an interest rate that is just [0.15% - 0.50%] 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.
Features
| Minimum Investment | $500,000 |
| Inception Date | 4th October 2024 |
| Management Fee | 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We do not publish performance for this strategy since performance is dependent upon term of financing
