Wilmington Trust is a registered service mark used in connection with various fiduciary and non-fiduciary services offered by certain subsidiaries of M&T Bank Corporation including, but not limited to, Manufacturers & Traders Trust Company (M&T Bank), Wilmington Trust Company (WTC) operating in Delaware only, Wilmington Trust, N.A. (WTNA), Wilmington Trust Investment Advisors, Inc. (WTIA), Wilmington Funds Management Corporation (WFMC), Wilmington Trust Asset Management, LLC (WTAM), and Wilmington Trust Investment Management, LLC (WTIM). Such services include trustee, custodial, agency, investment management, and other services. International corporate and institutional services are offered through M&T Bank Corporation’s international subsidiaries. Loans, credit cards, retail and business deposits, and other business and personal banking services and products are offered by M&T Bank. Member, FDIC.

M&T Bank Corporation’s European subsidiaries (Wilmington Trust (UK) Limited, Wilmington Trust (London) Limited, Wilmington Trust SP Services (London) Limited, Wilmington Trust SP Services (Dublin) Limited, Wilmington Trust SP Services (Frankfurt) GmbH and Wilmington Trust SAS) provide international corporate and institutional services.

WTIA, WFMC, WTAM, and WTIM are investment advisors registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply any level of skill or training. Additional Information about WTIA, WFMC, WTAM, and WTIM is also available on the SEC's website at adviserinfo.sec.gov.

Private Banking is the marketing name for an offering of M&T Bank deposit and loan products and services.

M&T Bank

Equal Housing Lender. Bank NMLS #381076. Member FDIC.

Investment and Insurance Products • Are NOT Deposits • Are NOT FDIC Insured • Are NOT Insured By Any Federal Government Agency • Have NO Bank Guarantee • May Go Down In Value

Investing involves risks and you may incur a profit or a loss. Past performance cannot guarantee future results. This material is provided for informational purposes only and is not intended as an offer or solicitation for the sale of any security or service. It is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. There is no assurance that any investment, financial or estate planning strategy will be successful.

Wilmington Trust

Understanding Using Unique Assets as Collateral

Finding the right liquidity solution is a process, not a product.

Advisory lending can provide you with a source of funding for business investments, real estate purchases, and unforeseen expenses. It’s a consultative and personalized approach to evaluating your options and providing lending solutions based on your objectives and unique assets – including specialty or illiquid holdings.

Advisory lending works hand-in-hand with your fiduciary, investment, and insurance strategies to make sure your banking approach is aligned with the rest of your financial plan. Uses for advisory lending include both short-term and long-term liquidity needs:

Bridge financing to help with a significant purchase
Marketable securities-backed lines of credit, including restricted and concentrated stock
Specialized asset-backed loans secured by partnership interests, fine art, yachts, and aircraft
Financing investor real estate

The power of leverage, securities-based lending at a glance

Using the market value of common investments like stocks, bonds, and exchange-traded funds as collateral for liquidity, or ready access to cash, can often be an efficient way to:

Create ready cash for a variety of spending needs or smooth out intermittent/irregular cash flow
Keep your investment strategy on track by leveraging rather than liquidating a portion of your portfolio, thus avoiding potentially taxable events caused by securities liquidation

This sounds great! Are there any risks involved?

Like many financial decisions, there are risks involved in any course of action. The biggest one to remember when thinking about securities-based lending is market volatility (sudden shifts in asset prices for things like stocks and mutual funds), which can magnify losses and even require immediate repayment of borrowed funds or covering deposits.

There are, however, many ways to manage these risks:

Selectively borrowing against less volatile investments
Diversifying amongst asset classes
Careful monitoring of investments (particularly during volatile times)

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