Hypothecation of current note portfolio

9 Replies

Quick question for experienced note investors : We are looking to build up a portfolio of performing notes. Does anyone have experience with hypothecation? Are there banks or funds who specialize in providing note buyers capital against their existing portfolio? We would like to continue to buy notes and hold in our portfolio but we anticipate our capital to decrease in the next few years if we continue to purchase , so looking for sources to hypothecate our portfolio and borrow more capital. Any advice on this strategy and sources would be greatly be appreciated. Best regards,

Yes, as I recall Blackstone or Blackrock had lending program that would allow note investors to leverage their NPLs at up to 50% of UPB. FCI used to have a conduit program that used this as a source. 

@Bob Malecki would you have any contact info of someone I could call and speak with ? These are all large organizations with endless personal who would have no idea of what I would be asking for unless I reached the right person.

Thank you so much.

Hi Anthony, I checked the urls for the sources I had bookmarked but they are all now non existent. I reached out to one of my main contacts and he said that these programs no longer exist, sorry!


@Bob Malecki thanks so much for the effort. If you do run across any information in the future please do share.
Best regards,

@Anthony Dadlani How big is your portfolio?  Note School and a few other sources sell these on a regular basis to their contacts.  You have to make sure you don't get on the wrong side of the law by advertising but if you have existing relationships you can leverage those.

The portfolio is in excess of $1M @Bob Malecki   If I were to offer to my existing contacts , Whats the right structure or contingent assignment paperwork for  hypothecation ? Or do I just assign  a portion of note to an investor.  

Well, you can always sell a partial on any of the notes in your portfolio using and assignment of receivables contract.

Thank you Bob Malecki. Would you know where I can download a standard template for this document and then I can tweak it to my needs ?

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