Securities lending, which can involve the lending of bonds as well as stock lending, involves the transfer of securities from one party to another – such as from a mutual fund or institutional investor to a hedge fund.
Block trades are usually conducted through an intermediary known as a block house. These firms specialize in large trades and know how to initiate such trades carefully, so as to not trigger a volatile rise or fall in the price of the security. Block houses keep traders on staff who are well versed in managing trades of this size. Staffers provide a block house with special relationships with other traders and other firms that allow the company to trade these large amounts more easily.
Repos are typically short-term transactions—usually overnight—but they can extend out as far as two years. They enable broker/dealers, banks and other market participants to sell securities in order to obtain immediate funds for their own accounts, or for the benefit of their clients.
Generally the cost of borrowed money is much less than the cost of obtaining additional stockholders' equity. As a result, it is usually wise for a corporation to use some debt and leverage. Perhaps this is one of the reasons that leverage is also known as trading on equity.
Securitization and structured finance transactions permit banks, lenders, finance companies and other companies to manage monetary records through on-balance-sheet debt or off-balance-sheet sale transaction structures with tax aspects often helpful to investors. Financing structures permitted under these types of transactions also assist borrowers with managing their interest rate exposure.
LionCap Global Management prepares you for the demands placed on a public company prior to your IPO. We provide IPO structure, ensuring that the presentation of financial statements and other financial data meets with all disclosure requirements.
Our established business model assist companies transitioning from the private sector to the public sector is complete with financing and market support.