Posts in Category: Economic Downturn

Equities First Holdings Experiences A Boom In Stock Borrowing

Equity First Holdings is a market leader in shareholder financing and a global lender with presence in several countries across the world. One of their most recent activities includes the changes noted by the company regarding the issuance of stock-based loans. Equity lending is growing in popularity and more institutions are entering into the market to address the rising demand for financing among investors.

Changes in the banking world have seen more banks tighten their lending regulations and review their loan qualifications while increasing interest, but this has not prevented people looking for financing from borrowing. People seeking working capital can opt for collateralized stocks and stock-based loans offer a higher loan to value ratio when compared to margin loans. They also come with a fixed interest, so there is not much worry about inflation and other market factors that may trigger changes in the interest rate.

In the conventional loaning system, fluctuation in the market is inevitable and may lead to additional costs with time. Many borrowers who opt for stock-based loans enjoy protection because they operate on a lower investment risk. Additionally, a big number of stock-based loans offers a non-recourse feature that enables the borrower to get out of the stock at any point in time, even when the value of the stock depreciates.

The interest rate that is offered for stock-based loans is low and stands at between 3 and 4 percent, and the rate is fixed. However, this is not the case with margin loans as they offer ratios ranging between 10% and 50% and the lender may choose to liquidate the collateral attached by the borrower without notice if there is a margin call.

About Equities First Holdings
Equities First Holdings, LLC offers clients with financing options that are alternative to the conventional options available in different markets. The company offers capital against stocks that are publicly traded to help clients meet their goals, both professional and personal. Equities First Holdings provides capital with shares as collateral as long as the shares are in publicly traded companies across the world.

As a global company, Equities First Holdings has opened offices in nine locations including London, Australia and China. The company is looking to expand to other markets to address the rising demand for alternative lending options at lower interest rates.

Shortage Crisis Continues in Venezuela

Venezuela is not only facing food shortages but electricity. They are suffering from a drought that has decreased power at the hydro-electric dam that creates most of the country’s electrical power. This has impacted everyone including the local hospitals.

For instance, the University Hospital in Caracas has had to cut back to survive as an institution. According to the website, doctors have to take pictures with their cell phones of the X-ray images that are done. This is because there isn’t anything to print them on with.

“We have all kinds of shortages, “Dr. Elizabeth Ball, a dermatologist and teaching professor relayed. “There are days when there are no IV solution…days when there is no anesthetic.”

There isn’t enough power to light up the entire hospital either. Venezuela has power cuts daily. “In fact, they have cut back on other things too” says analyst  Danilo Diaz Granados.

Public sector employees’ hours are cut. They come in for only two days per week. This is so energy is saved. Venezuela’s clocks have jumped forward by half an hour in time to guarantee that more of the working day occurs during daylight. There are individuals like Danilo Diaz who are working to better Venezuela.

Venezuelans are in the process of trying to fix their problems. Currently, a petition of nearly two million signatures was handed into the country’s electoral commission to recall President Nicolas Maduro.