Construction loan based on pledging a stock portfolio

I can only share my personal experience, and it concerns Flatex, which unsolicitedly granted me continually increasing Lombard credit lines with immediate availability. The amounts were also more than 50,000€, which are now offered on the website. One could also see the loan-to-value ratio for each security in the portfolio. Quite different, for example whether it was stocks or government bonds.

Flatex is an online product. You don’t just press a button and someone starts calculating. Those who do that die. It has already begun.

This is a good example for my statement that no one needs banks, but very much needs banking. It was a few months ago, but I believe you didn’t want to agree with me there either. However, I still see it that way.

Flatex is an online product. You don’t press a button and then someone starts calculating. Those who do that die. It has already started.

For every euro that Flatex offers you there as credit, Flatex has to have 8 cents of equity capital lying around.

8 cents, with which they might be able to earn more money elsewhere. Or have already priced in.

And not just with you, but with every customer. If the calculation works out, good. If not, you said something about dying.

Doesn’t matter whether someone calculates or the computer calculates.

However, since not all customers immediately exhaust their credit line, there is probably far less drama involved than your portrayal suggests. Besides, it doesn't matter how they calculate it; the fact is that this product exists. Whether you can comprehend that or not.

@ all,

thank you to those who responded. I have now understood that my original plan to pledge my stock portfolio will not work. It will probably now be a combination of selling stocks and a short-term personal loan.

By the way, terms like "Lombardkredit", "WIKR" and "Mittel aus RK1-2" were never familiar to me. At least I was able to find the first two terms using Google. I will probably read here more often now.

Gotthilf

I would also sell the necessary number of shares; almost everything is close to its all-time highs and will probably not rise significantly in the medium term.

Flatex does show a lending value, but there is an application form for the Lombard loan. Of course, I do not know whether this was, is, or will be the case for all customers and at all times.

Terms like "Lombardkredit", "WIKR" and "Mittel aus RK1-2" were unknown to me.

You do not need to know the first two, the last phrase would already be worthwhile knowing if you own such a large portfolio (and otherwise as well).