Frequently Asked Questions
What if the borrower defaults? Are my loans collateralised?
All loans are over-collateralised at 105% of the value of the loan. This collateral is held and managed at Bank of New York Mellon (BNYM), one of the world’s biggest custodians.
In the event of a borrower default, you have the right to receive the collateral or ask for its liquidation and receipt of the proceeds.
Sharegain only accepts “High-Quality Liquid Assets” (HQLA) as collateral. Collateral is posted on a ‘pre-pay’ basis, meaning delivery of loaned securities will only occur once collateral is confirmed as settled and allocated to your collateral account. Loans and collateral are monitored in real-time and marked to market at least daily.