If you're reading all caps rumors from chat rooms but the source is literally given as "SOURCE" -- perhaps take a second to reflect on how reliable you think it is?
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Oh yes, completely agree this is possible -- but this is not how margining a TRS with your prime broker works! CSA normally says you post variation margin daily. If the collateral is not literally in your broker's account, it is basically an uncollateralised loan ;)
Idea by @1867ben that you could get a loan secured against assets (but without depositing collateral) and use the proceeds to fund additional margin for collateralised lending is interesting.
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Getting well past my level of expertise now though
Thanks. Twitter will use this to make your timeline better. UndoUndo
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Lending for margin is actually quite standard - there are some nice accounting/reg benefits for it. But failing on basic DD to secure assets for lending…
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the horrible thing about the "one bank" approach is that everyone thinks everyone else has done the dd because it's not "their" client. And once the loan is made, the cash is cash and can be deposited in the prime a/c
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