Is there any advantage to a larger portfolio of securities (e.g., over $10 million) as opposed to a smaller one?
In principle, the stronger and healthier the securities in any portfolio, the more loan options and flexibility will be available in the final loan contract. “Stronger” for purposes of these lending programs would include this criteria: 1) Price and history. A price over $9 a share and a long history of trading are advantageous. 2) Size of portfolio. A portfolio valued at over $2 million typically is more attractive as loan security. 3) Volatility. If the price has been stable, rising and falling relatively slowly or rising steadily over time, this is a plus.
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- Is there any advantage to a larger portfolio of securities (e.g., over $10 million) as opposed to a smaller one?
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