broker's loan

(redirected from Broker Loan)

Broker's Loan

A loan to a broker or brokerage by a bank. Brokers take out broker's loans usually to fund margin accounts for their clients, but also to fund underwriting purchases. Occasionally, brokerages borrow these loans to buy securities for themselves as well. Broker's loans are payable on 24 hours notice, and carry interest rates that are about one point higher than short-term rates. See also: Broker call loan.

broker's loan

Funds borrowed by a broker, mainly from banks, for various purposes including a call loan for purchases of securities on margin, an underwriter's purchase of a new security issue for resale, or a specialist's inventory of securities. Also called general loan and collateral agreement.
References in periodicals archive ?
He then sells the borrowed stock through the same broker,and the proceeds of the short sale earn interest at a broker loan rate, which is currently approximately 5 percent.
The average broker loan size has increased over the last five years
An example of this new generation of broker portals is Houston-based Aegis Mortgage Corporation's Aegis Broker Loan Enabler (ABLE) portal.
All of IndyMac's broker loan submissions are made online, says Wagner.
E[acute accent]In this newly created position, Winters will establish and oversee all facets of broker loan operations including working with other origination executives to develop coordinated and effective broker-originated loan programs, setting annual production goals and evaluating broker loan activities for quality and efficiency.
Liberty is also using GHR's Wholesale Origination Web site to streamline broker loan origination.
Liberty is also using GHR's Wholesale Origination Website to streamline broker loan origination.
The Company serves over 10,000 brokers with online broker loan search and productivity tools that are linked to over 77,000 loan programs nationwide.
We serve mortgage originators with online broker loan productivity tools and websites powered by a database of over 100,000 regionalized wholesale and correspondent loan programs nationwide.
Steinberg will join ABFS as an executive vice president, responsible for helping to build the Company's expanding broker loan origination channel across the country.
The Company serves over 6,700 originators with online broker loan productivity tools and websites powered by a database of over 70,000 regionalized wholesale and correspondent loan programs nationwide.
The Company's total broker loan production during the three months ended September 30, 2003 was $920.