Finance Management

How Increased Transparency and Better Regulations Have Attracted Borrowers to Stock-Based Loans

Equities First Holdings, LLC posted impressive gains in the fist-financial half of 2016. This was an unexpected turn of events especially considering the disparaging state-of-affairs in the global financial lending world. In recent times, banks have made it next-to-impossible for borrowers to acquire the necessary funding for capital investments. According to the CEO and Founder of Equities First Holdings , Al Christy. Jr., stock-based loans are innovative solutions because of their higher loan-to-value ratio as compared to margin loans and their lowered interest rates.

 

A majority of loans typically extend over three years. And, as is common knowledge, it is impossible to escape-the terrible-market fluctuations over that duration. The stock-based loan, on the other hand, has some cushion against this rattling-effects of the markets. The consumer is protected by the non-recourse feature which makes it possible for them to walk away from that loan at any given time.

 

Margin Loans Versus Stock-Based Loans

 

Christy went ahead to spell out the differences between margin loans and stock-based loans. The only similarity joining the two options is that they both use securities as collaterals. Interest rates are flexible, and the loan-to-value ratios ranging 10% to 50%. Another feature is that the lender has the right to terminate the contract and proceed to liquidate the collateral of the creditor if a margin call arises.

 

Stock-based funds, on the other hand, have a fixed interest rate of around 3-4%. The loan-to-value ratios are much higher as from 50-75%. The loan comes with few restrictions, and you are at liberty to use the funds as you please. The no-recourse feature does not apply here.

 

 

Many mainstream investors have ignored them because this industry has been a haven for unscrupulous lenders in the past. Lenders who made away with the collateral holdings and the stocks of their borrowers. Christy, however, noted that the increased transparency and regulations now in place meant that fewer unbecoming incidences occurred.

 

About Equity First Holdings

 

EFH remains at the forefront of providing competitively-rated loans to business and high net worth individuals. Beginning 2012, borrowers have secured financing solutions capital using their stocks as the only collateral. So far, the company has transacted a total of $1.4 billion. They now operate from 9 countries.

 

For more details please visit http://www.equitiesfirst.com/

Former Chopper Trading CEO and Now Scoutahead CEO- Raj Fernando

Raj Fernando is the founder of Chopper Trading Company; he started the firm in 2002. Before starting his trading company, Raj was a successful trader at the Chicago Mercantile Exchange and the Chicago Board of Trade. Mr. Fernando has a degree in economics and history. He also has a vast experience in various cyber security and financial firms in the industry. His excellence performance in different fields shows that Raj is an expert in capital markets and technological innovations. He has been an active member of foreign policy companies; he makes a massive effort here to various organizations in the entire United States and across Chicago.

Mr. Fernando holds several positions in several agencies in the United States. He is a member of the Chicago Council of Foreign Affairs, the Chicago Symphony Orchestra and the United States Security Project. His trading career had a simple start, he began as a novice after graduating from college and moved his way up to have various positions. He later started his company known as Chopper Trading.

In a bid to deliver accurate data to individuals, firms and the internet at large, Raj Fernando started another firm known as Scoutahead.com in 2016. The company focuses reliable information so as to increase professionalism and productivity in the corporate world. The startup has had a big start and is set to grow to become a globally leading company. This is because of the CEO; Mr. Fernando has decades of experience in the cyber security industry. He also offers extraordinary insights and counsel to steer the firm to rapid growth.

About Raj Fernando

A lot can be said about Mr. Fernando; he is also an active supporter of multiple charitable organizations in Chicago and the United States. He has in the past had a record to participate and fund raise activities for Democratic Candidates within the United Stated. He assisted in raising funds for the Barrack Obama presidential campaign in 2011. All in all, with 14 years of experience as CEO, Fernando has proven an extensive knowledge and success in what he does. It is not surprising that Chopper was named as the best workplaces in 2012 by the Chicago Tribune.
More about Raj Fernando: https://www.linkedin.com/in/rajfernando

Marcio Alaor Provides Market Forecasts From CES

The CES or Consumer Electronics Show is the most popular show of its kind, and Marcio Alaor of BMG Bank was in attendance. An article in Exame explains Marcio predictions for many of the products he saw at the show, and this article goes into some depth about each prediction. Marcio is responsible for investments at BMG, and he wants his customers to understand his position on new products. New electronics are not all perfect investments, and Marcio is honest in his assessment of each product.

#1: New Drones

A passenger drone developed in China is a promising device that can be flown by auto-pilot, and it will carry a few passengers to a pre-determined destination. Marcio believes that drone technology is impressive, but he has security concerns about such a device. He wants to see further security development for the drone before he is willing to put his money into the drones.

#2: Electric Cars

Electric cars were a major attraction at the show, and Marcio was impressed with electric cars from Chevrolet, Ford and Volkswagen. Electric car prices are falling because of advanced technology, and Marcio believes that new electric cars are better investment because of their advanced technology. Marcio does not recommend a certain vehicle, but he does want his investors to have a look at the future of driving. Electric cars will soon be the preferred option on the road even in Brazil.

#3: Smart House

Smart House is the most impressive item that came out of the show. Marcio notes that Smart House has a camera system that can take a picture of a house at any time. Someone with the Smart House system may use the camera in their refrigerator to choose which items must be purchased at the store, and cameras in the garage will tell homeowners if the doors are closed. Home automation has become extremely popular in recent years, and Smart House is using camera technology to make the transition worth it for homeowners.

#4: Samsung’s Refrigerator

Samsung has a refrigerator that will connect to the Smart House system, and the fridge has its cameras built in. Samsung likely has further plans for their new refrigerator, but the price is quite high at this time. A refrigerator that costs 5000 US dollars is likely too much for most consumers in Brazil. Marcio wants consumers to be on the lookout for new refrigerators that are cheaper in the future.

Marcio Alaor has given a full report on the events at CES by noting the most interesting investment opportunities. Electric cars are good investments at the present time, and home automation is on the rise. Other items are intriguing, but they are not yet up to Marcio’s standards.

James Dondero, Successful Entrepreneur with a Midas touch on Investments

James Dondero has had a successful career that he continues to build by the day. He boasts of experience spanning more than 30 years as an investment banker. James Dondero has been an active player in the credit markets having started his career with the popular Morgan Guaranty training program. He has had unmatched success in the equity and credit markets. James has specialized in high yielding and distressed markets.

James Dondero attended the prestigious University of Virginia where he undertook his undergraduate degree. He graduated with top honors in accounting and finance. After his graduation, James Dondero joined the Morgan Guaranty training program before securing a job with the American Express. He worked at the American Express as a corporate bond analyst and portfolio manager. Due to his competence and experience, James Dondero was employed by the GIC to serve as its chief investment officer. GIC is a branch of Protect Life, a large insurance company. Within a period of five years, James Dondero developed the subsidiary by starting it from scratch and developing the company to have an asset base of over $2 billion.

After registering success at GIC, James Dondero opted to establish his own venture. In 1993, he co-founded Highland Capital Management. This investment company has successfully pioneered a number of initiatives within the investment sector. In addition, the firm has been coming up with creative strategies aimed at providing sound investments. Highland Capital Management broke new ground with the collateralized loan obligations. Its core business is offering solutions to retail as well as institutional clients around the globe. The registered offices of the company are located in Dallas. Owing to the dynamism of its service, Highland Capital Management has managed to expand its operations through its new offices in Singapore, London, and New York. Highland Capital Management is a leading alternative investment management company that runs hedge funds, distressed investments, and structured investments. The company has over $18 billion worth of assets under its management.

James Dondero is the current chairman of Cornerstone Healthcare and Nexbank among many other organizations. Over the years, he has been appointed in the boards of different organizations. Some of these organizations are the MGM Studios, NexPoint Residential Trust, Inc as well as the American Banknote. James Dondero is an active supporter of charity organizations that anchors their efforts on educational matters, public policies, and veteran affairs. He has donated millions of his cash towards these courses.

In his successful career, James Dondero has won many awards and accolades particularly concerning his exemplary management style. In 2014, he was awarded the Lipper Award for Floating Rate Opportunities. He also received a 5 star award for Global Allocation.

James Dondero is known to have a Midas touch when it comes to investments. He is a sure bet in making profits and this rare ability makes him standout from other investment bankers. His knowledge on investment has not only fetched high returns to clients but has also boosted his net worth. James Dondero is a Certified Management Accountant and a qualified Chartered Financial Analyst.