Budapest Stock Exchange History
To process settlements more smoothly, the Budapest Stock Exchange uses central counterparty services together with KELER. The exchange based in Hungary boasts a wide range of products. In addition to debt securities and equities, the exchange also supports investment funds and international equities.
Currently, the BSE is owned by the National Bank of Hungary (NBH), whichtook ownership from the Österreichische Kontrollbank AG and Austrian CEESEG AG. The Budapest Stock Exchange is now in the fifth year of its new five-year strategic initiative .
What is a Stock Loan?
Before we dive into stock loans specifically, we want to review the basics of borrowing money. Borrowing money from a bank or other lending institution typically requires you to put up some form of security. This could be a house deed, a car title, or even other investments. If you own stock in publicly traded companies as part of your investments, you can take out a loan against the stock that you own.
Stock loans are also known as security-backed loans. This form of lending enables you to maintain ownership over the stocks that you already own that trade on the BSE in Hungary.
You’ll potentially be able to take out up to 60% of the total value of a stock you own that trades on the Budapest Stock Exchange. Every Stock Loan Solutions stock loan is non-recourse, meaning that if you default on the loan, you can walk away without damaging your credit.
How to Qualify?
To quality for one of our BSE stock loans, you have to meet three basic requirements,
- You must be an owner of non-marginable BSE security
- You must request a loan between USD50,000 and USD5 million
- Your shares must be free from trading restrictions
If you aren’t sure how large of a loan you qualify for, talk to one of our representatives today. Our team would be happy to guide you through the process and answer any questions that you might have.
Advantages of Stock Loans
Our loans offer many advantages that will help give you a leg up in Hungary.
You’ll be able to:
- Take out a loan no matter where you’re physically located in the world
- Take advantage of the competitive loan-to-value ratios (anywhere from 45-60%)
- Avoid a personal guarantee which means that if a default should occur, your credit score will be unaffected
- Rest easily knowing your information stays confidential and secure
Plus, we provide very competitive interest rates no matter the amount you take out for your loan.
How Do Stock Loans Work?
Also known as securities lending, these loans are available to help investors keep the stock they own while still having access to the cash they need in order to make other investments. Our borrowers gain the opportunity to dip into the value of their non-marginable stock quickly and easily without having to wait a long time for the money.
Our loan amounts are dependent on characteristics of the collateralized security, including the number of shares, price, volatility, and additional criteria. By transferring your stock to us, you can be assured of receiving a loan against its value. All you have to do is make quarterly interest payments during the life of the loan. We keep the process simple: once you fully repay the borrowed amount, your stock will be transferred back to you.