Rates


CURRENT RATE SCHEDULE (As of 11/17/2018):
Rates Subject to Change 


LOAN BALANCE - VARIABLE INTEREST RATES
The interest rate on a client’s securities-backed line of credit may vary based on your client’s outstanding principal loan balance, and is calculated using the sum of the Wall Street Journal Prime Rate (WSJP) and the rate set out below.

LOAN BALANCE

 RATE CALCULATION

FLOOR*

$75k - 99,999.99

 WSJP + 1.00%  

3.5%

$100k - 249,999.99

 WSJP + .25%  

3.5%

$250k - 499,999.99

 WSJP +  0%  

3.5%

$500k - 999,999.99

 WSJP - .25%  

3.5%

$1MM +

custom quote with supporting documentation

 

* "Floor" refers to the minimum interest rate payable. The client will be charged the higher of either the Floor Rate or the Tiered Interest Rate (see Rate Schedule above).


CREDIT LIMITS**
Credit limits are based upon the quantity and type of underlying collateral. The limit is determined by multiplying the collateral value by the “advance rate” associated with the security class. Note that the advanced rate applies to individual securities and mutual funds falling within the specified asset class.

Asset Class

Advance Rate

Cash and Equivalents

100%

US Treasury Instruments

90%

Investment-Grade Municipal & Corporate Bonds

80%

Non-Investment Grade Municipal & Corporate Bond Funds

50%

Equities

50%


Special Notes 
- Asset class advance rates apply for both individual securities and pooled vehicles, like mutual funds and ETFs – with the exception of Non-Investment Grade Fixed Income, which are only acceptable as collateral when held within diversified mutual funds or ETFs. All Treasury, Municipal, and Corporate fixed income instruments are evaluated on Market Value. Concentrated portfolio holdings are subject to reduced advance rate calculations at the discretion of The Bancorp.

Lines backed by portfolios allocated across asset classes will be assigned blended advance rates.

Note:  Significant changes in the asset allocation of the collateral account may limit the borrower’s ability to draw against the line. This could occur if assets are shifted from an asset class with a higher advance rate (such as fixed-income) to one with a lower advance rate (such as equities). Although there are no formal restrictions in place on trading within collateral accounts, advisors are strongly advised to contact Bancorp’s collateral analysis specialist to review the potential impact of any change in overall asset allocation prior to its implementation.

**Subject to standard credit approval. Otherwise, rates and terms may vary. Minimum line amount of $75,000. Collateral must support credit limit of $75,000 or greater.