- Full assumption of counterparty risk by NAB, combined with our diligent collateral management, means that we shoulder the risk – not your investors.
Benefits and features
Pass the risk to NAB
Make use of dormant securities
- Additional returns generated from lending dormant securities mean greater returns for the portfolio and greater returns for your investors.
How it works
- Loan is initiated between NAB and borrower.
- Terms are negotiated.
- NAB receives collateral from the borrower. Assets are held in trust and therefore not available to liquidators.
- NAB transfers security to borrower.
- Loan is marked-to-market daily.
- Borrower returns security to NAB as per agreed terms, or at lender’s request.
- NAB returns collateral to borrower.
- Revenue shared between client and NAB.