Financial flexibility using Securities Financing

Securities financing lets you hold on to the investments in your portfolio while still giving you access to your capital for investment purposes. This means you can capitalise on emerging investment opportunities without having to sell your existing investments to raise funds.

Features and benefits

  • Ability to withdraw funds without selling existing investments
    You can use the loan proceeds to buy additional investments without having to sell any existing investment.
  • Flexibility to pay off amounts withdrawn from the facility
    You can pay off your loan partially or in full anytime.
  • Available in major currencies
    Your loan facility is available in SGD, USD, EUR and AUD to suit your personal investment needs.
  • Only pay interest on what you use
    Interest is calculated only on the amount of funds utilised on a daily balance basis.
  • Ease of increasing or reducing limits
    You can increase or reduce limits with ease using the Customer Instruction Form.

How it works

You can borrow up to a certain percentage of the value of the assets held in your portfolio with us, so long as they are acceptable to us as security for the loan.

Unit trusts:

  • Risk rating 1: borrow up to 70%
  • Risk rating 2 or 3: borrow up to 60%
  • Risk rating 4 or 5: borrow up to 50%


Notes/bonds:

  • Risk rating 1-3: borrow up to 60%
  • Risk rating 4 or 5: borrow up to 30% 


Shares:

Borrow up to 50%

Please speak with your Relationship Manager for the full list of acceptable shares, unit trusts, notes or bonds (excluding high yield bonds) which you can use as security for the loan and applicable loan-to –value ratio, which are subject to changes and HSBC’s right of review.

What it costs

Interest

  • Premier: VLR + 0.95% p.a.
  • Jade: VLR + 0.75% p.a.

The variable lending rate (VLR) is set on a daily basis and is determined by a list of factors including costs of borrowing, internal business costs and market conditions. Speak to your Relationship Manager for the prevailing rates, which are subject to change.

Fees and charges

  • The minimum interest charge is S$10 per month (or equivalent currency of your facility). This is payable only if you use your facility.
  • If you go over your facility limit, you'll be charged interest on the excess amount at a rate of VLR + 2%.

Repayment term

There is no minimum monthly repayment required. You can repay any amount at any time, or on demand. 

The applicable interest rates and terms are subject to changes and HSBC’s right of review.

Things to know

  • The securities in your securities financing investment account will be used as collateral for the loan. A decline in the value of the securities may result in your outstanding balance exceeding the facility limit. As a result, we may seek additional funds from you, charge additional eligible securities, or sell securities to maintain the applicable margin ratio. If we need to close the facility, all monies due under the facility needs to be repaid in full, on demand.
  • This facility is uncommitted and we may need to cancel, review or alter the terms of the facility at any time, without prior notice. If we need to close the facility, all money under the facility needs to be repaid in full, on demand.
  • Subject to market conditions, Securities Financing may increase your potential gains or magnify your losses as compared to investing without Securities Financing.

Eligibility

To apply for securities financing, you must be:

  • an HSBC Premier or HSBC Jade customer
  • between 21 and 65 years old at the point of loan application.
  • a resident of Singapore, or another eligible country. Please check with us for up-to-date residency criteria.

Frequently asked questions

Learn more about Securities Financing

Contact us by phone

Contact your Relationship Manager directly.

Things to note

Deposit Insurance Scheme

Singapore dollar deposits of non-bank depositors are insured by the Singapore Deposit Insurance Corporation, for up to S$75,000 in aggregate per depositor per Scheme member by law. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

Disclaimer

This web site is for information only and should not be construed as an offer, solicitation or recommendation of any product or service. Further, the information contained on this web site is intended for Singapore residents only and should not be construed as an offer, solicitation or recommendation of any product or service in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America and Canada.

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