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.
In the broker-financed transaction, the broker loan could be increased to cover the tax liability.
The average broker loan size has increased over the last five years
Figure 16: Mortgage broker loan size has increased 27
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.
An example of this new generation of broker portals is Houston-based Aegis Mortgage Corporation's Aegis Broker Loan Enabler (ABLE) portal.
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.
All of IndyMac's broker loan submissions are made online, says Wagner.
The Company's total broker loan production during the three months ended March 31, 2004 was $1.
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.
Liberty is also using GHR's Wholesale Origination Web site to streamline broker loan origination.
Of the total broker loan production during the three months ended September 30, 2002, mortgage loan origination through the Company's traditional regional broker office network was $465.