broker's loan

(redirected from Broker Loans)

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 ?
Liberty Capital Group has the advantage of being able to broker loans much faster than traditional banks (usually within a few days), with minimal upfront costs to the borrower.
Loans originated directly by the lending institution traditionally have performed better than correspondent and broker loans.
The Texas Constitution prevents lenders from charging interest rates above 10 percent, but payday and auto-title lenders get around that cap as "credit access businesses," which technically broker loans between consumers and third-party lenders.
Target Asset Management will manage the fund and Blackmoon will act as a technological provider for access to balance sheet lender portfolios, serve as risk assessor and broker loans. The fund will become fully operational by the end of April 2016.
What has changed for Wells, Frommeyer explains, is that by acquiring the broker loans via correspondents, "they can have somebody to buy it back" if that becomes necessary, he adds.
Hughton will attempt to broker loans from other topflight clubs, but he knows that option has been complicated by new Premier League rules governing squad size and composition.
But Andy Pelley of credit broker Loans.co.uk said: "You can't offer good service from 6,000 miles away."
In particular, the Fed has the power to order increases in the margin requirement on broker loans, dampening stock market speculation.
The founding of a mortgage bank, the Credit Foncier, in 1852, completed the transfer of private credit to banks, although notaries continued to broker loans in the countryside.
Council bosses have solved that problem by agreeing to broker loans based on the future rather than current value of the property.
Other factors include the increase of the discount rate from 5 to 6 percent in August of 1929 by the Federal Reserve Bank of New York; a scarcity of new broker loans due to pressure from the Federal Reserve Board to restrict loans to finance speculation; fears that a forgery scandal such as had occurred in England in the Hatry investment firm could happen in the U.S.; and, statements by important people, including the secretary of the treasury, that stocks were too high and speculation excessive.
In addition, all broker loans and a majority of correspondent loans are non-delegated and underwritten by Flagstar.