Securities-Backed Lending Explained
Securities-backed lending is a structure where eligible investment assets may be used as collateral to access capital.
Instead of selling investments outright, investors may be able to borrow against them while maintaining ownership exposure.
Why investors consider it
Long-term investors sometimes want liquidity without disrupting their portfolio strategy.
This can be relevant for:
- Business expenses
- Property purchases
- Tax planning
- Bridge financing
- Large personal expenses
Potential benefits
- Maintain long-term investment exposure
- Avoid immediate taxable sales
- Access liquidity faster than selling assets
- Flexible use of capital
Potential risks
Like any collateralized structure, risks exist.
These may include:
- Market volatility
- Collateral calls
- Changing advance rates
- Interest costs
- Forced liquidation risk
Learn more
AccessInvested is exploring a potential future pilot in this area.