Hypothecation of current note portfolio

[Anthony Dadlani]

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,

[Bob Malecki]

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.