Securities-Backed Loans and Asset-Backed Obligations

What is a securities-backed loan?

A securities-backed loan, or asset-backed obligation, is debt collateralized by an investor’s existing portfolio of securities. This type of loan allows the investor to continue to buy and sell within the pledged account while still taking out cash for expenses of any kind.

What are the risks associated with a security-backed loan?

While marketed to investors as an easy and flexible way to gain access to cash by borrowing against an existing investment portfolio, a securities-based loan comes with inherent risks. First, the assets pledged may fluctuate in value due to events outside of the investor’s control. If they decline, the investor may be forced to sell the holdings or come up with extra money quickly. Additionally, there may be unintended tax implications.

What can you do if you’ve lost money due to a securities-backed loan?

If you’ve been sold a securities-based loan that was unsuitable for you, you may have a case for recovery. It is advised to seek the advice of a trusted investor rights attorney who can guide you.

Take the next steps to find out if you have a claim:

Step 1.

Talk to an Experienced Attorney Today

Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!

Step 2.

Quick Review of Your Paperwork

If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.

Step 3.

Signed Attorney/Client Agreement

If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*

*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.

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This site contains attorney advertising. The attorneys at ChapmanAlbin are licensed to practice law in Ohio and Michigan. Any reference to past cases or successes made herein should not be construed as a guarantee of any future outcome. Each client and each client’s case is unique, and no result or outcome is or can ever be guaranteed. The information provided in this website is offered for general information purposes only; it is not offered as and does not constitute legal advice in any way. // Disclaimer