How does EFH set a “strike price” and determine a loan value?
Before a loan can be funded, a “strike price” (the per-share price that the value of the collateral will be based on) must be set. EFH uses a fair and equitable three-day average pricing model for every securities loan it transacts. The strike price is based on an average of the closing prices of the collateral for three consecutive market days, beginning with the day it is transferred to EFH. Borrower retains beneficial ownership The borrower receives credit for all dividends or interest that the securities are entitled as well as upside market appreciation. What is the EFH loan process? Since there is no middleman, we have the freedom to work directly with you and make your loan experience easy, fast, straightforward, and hassle-free. Here it is in five simple steps: • Contact EFH with complete details about the proposed collateral and the amount of nonpurpose funding needed. • Provide proof of ownership of your securities, bonds, or options with either electronic or physical certifi
