Equities First – Stock Lending Counteracting the Financial and Economic Crisis

The world monetary crisis has raised vital questions on how global policy frameworks regulate, monitor, and manage global liquidity. In public and international financial structure, liquidity is negatively impacted by excessive volatility. In that line, G20 has been working hard to bring about the best solutions. Before they have been focusing on essential array of financial and banking reforms but have stopped to address the vital challenge of calibrating world liquidity in order to cater for the global economy necessities. To date, acquiring a conventional loan is really a challenge, but small business and individual investors have sought other better means of acquiring affordable working capital. The number of stock loan borrowers has been on the rise and Equities First takes pride in providing innovative solutions at a time when the world is fighting a lot of monetary issues.

The urgency of changes is reinforced by various factors and most well among them is; in the next decade, developing economies will probably account for at least 50% of the world financial assets, with a number of systematically vital financial institutions emerging, especially in Asia. Another factor is the timing and prospect of the US Federal Reserve as the interest rates are on the rise. The rise coupled with the new concern regarding retrenchment in world capital flows, has added weight on the significance of liquidity management as a world public necessity.

Central banks have worked to do this amid crises by highly increasing the amount of swap agreements. But they have also stopped due to establishing of institutionalized world swap network, which is understandable as they are basically driven by domestic mandates. The trend of borrowing stock loans has increased with various investors reaping the benefits of alternative lending solutions offered by Equities First. The loans come with various benefits which include small interest rates, higher loan to value (LTV) rates, non-purpose and non-recourse features among other gains.

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