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Lombard Lending
Borrow against your trading and investment portfolio
Borrow against the value of eligible securities, cash deposits, or investment holdings, without having to sell out of your positions. Get the liquidity you need without stepping out of the market.
How It Works
- Loan value based on a conservative share of your eligible collateral
- Flexible drawdown, so you can repay and redraw as needed
- Competitive rates tied to USD benchmark rates
- Your portfolio is monitored to keep margin and collateral coverage healthy
Loan to Value, Explained
The amount you can borrow against a portfolio is expressed as a loan to value ratio, or LTV, the percentage of your collateral's market value the bank is willing to lend. LTV is not a single number across your whole portfolio, it varies by asset type. Cash and highly liquid government bonds typically support a higher LTV, often in the range of 80 percent or more, because their value is stable and easy to realize if needed. More volatile assets like individual equities or precious metals typically support a lower LTV, commonly in the range of 50 to 70 percent, to leave a buffer against price swings. A well diversified portfolio across several asset types generally supports a better blended LTV than a concentrated one.
A Worked Example
Say your Investment Account holds USD 400,000 in a mix of government bonds and diversified equities. At an illustrative blended LTV of 65 percent, you could draw up to roughly USD 260,000 against that portfolio as a Lombard credit line, while keeping every position exactly where it is, continuing to earn dividends and coupon payments, and avoiding the capital gains event a sale would trigger. You draw only what you need, when you need it, and interest accrues only on the amount actually drawn, not the full facility.
What Happens if the Market Moves Against You
Because your collateral's value can change, we monitor Lombard positions continuously. If the market value of your pledged portfolio falls enough that your outstanding loan is no longer adequately covered, you will be asked to either post additional eligible collateral or repay part of the loan to bring coverage back within terms. This is standard practice across Lombard lending generally, and it is exactly why diversification within a pledged portfolio matters: a concentrated position that drops sharply is far more likely to trigger this than a diversified one.
Who It's For
Available to Private Banking clients with qualifying investment or savings balances. Talk to your relationship manager about what collateral would work for you.
Ready to get started?
Tell us a little about your business or your trading, and a relationship manager will walk you through everything from there.
