Securities-backed solutions to mitigate uncertain prospects

In the dynamic world of finance, investors are constantly seeking new ways to navigate complex and ever-changing market conditions. As we enter the second half of 2024, equity markets are facing various challenges, including lackluster earnings growth, geopolitical risks, and expensive valuations. In such uncertain times, securities-backed financing can provide an alternative route through potential market volatility, as well as upside potential for long-term shareholders.  

Backed by a wealth of experience spanning more than two decades, EquitiesFirst has emerged as a leading provider of non-traditional capital. Leveraging its expertise, EquitiesFirst offers an alternative funding solution that addresses the liquidity requirements of investors while preserving the upside potential of their assets. Through securities-backed financing, investors can unlock the capital they need without compromising their overarching investment goals.

Uncertain market moves require prudent strategies

Accurately predicting the performance of various sectors remains a challenge in an ever-evolving market. For instance, some of the most popular stocks in the US technology sector underperformed in April.[1] On the other hand, sectors like energy, utilities, and basic materials are showing signs of being undervalued due to past underperformance and rising interest rates,[2] which makes them increasingly attractive to astute observers.

This inherent uncertainty emphasizes the importance of diversification as an effective risk management strategy. By allocating resources across different sectors, including potential opportunities in energy, utilities and basic materials, investors can seize undervalued prospects as they emerge while defending their portfolio against potential downturns in any specific sector.  

The pursuit of emerging opportunities with securities-backed financing

EquitiesFirst’s offerings are well-suited to align with these market movements, empowering investors to diversify their risks and capitalize on sectors that show promise in the current economic climate. With non-recourse and non-purpose funding, EquitiesFirst presents investors with the appealing option to utilize funding without limitations, further enhancing their agility and resilience in the face of harsher market environments and the ability to plan their investments strategically.

In today’s market, where downside risks such as sudden commodity price swings and supply disruptions persist,[3] it becomes crucial for investors to prioritize capital preservation and risk mitigation. The International Monetary Fund (IMF) has issued warnings regarding these potential threats.[4] In this volatile environment, EquitiesFirst presents a compelling solution in the form of securities-backed financing.

Securities-backed financing offered by EquitiesFirst provides investors with a means to protect capital while using their securities as collateral. This financing approach allows investors to unlock the value of their assets without having to sell them, thereby preserving their capital and creating a buffer against market volatility. By leveraging this solution, investors can navigate the uncertainties and potential risks in the market while maintaining their long-term investment positions and minimizing the impact of downside risks.

Cushion against risks while retaining flexibility

With EquitiesFirst’s typical loan-to-value ratio of 65% for liquid securities, investors can use securities-backed financing to preserve a substantial portion of their asset value as funding, cushioning against potential market downturns. This conservative approach allows investors to maintain a healthy liquidity position, mitigating exposure to fluctuations and bolstering their capacity to weather market turbulence. By leveraging the value of their securities holdings without resorting to liquidation, investors can adapt to market fluctuations and proactively optimize their investment strategies with confidence. With assets pledged as collateral, investors not only gain financial support but also retain the potential for long-term appreciation. This dual benefit can help to protect portfolios against unforeseen shocks while also helping investors maintain their investment strategies with reduced exposure to external market forces.

As we look ahead, EquitiesFirst remains committed to aligning our interests with partners, providing financing solutions that meet their needs for flexible liquidity and the potential for long-term capital appreciation. With a focus on growth potential, adaptability, and client success, EquitiesFirst is leading the way in securities-backed financing in an ever-changing financial landscape.






Past performance does not guarantee future returns, and individual returns are not guaranteed or warranted.

This Document is intended solely for accredited investors, sophisticated investors, professional investors, or otherwise qualified investors, as may be required by law or otherwise, and it is not intended for, and should not be used by, persons who do not meet the relevant requirements. The content provided herein is for informational purposes only and is general in nature and not targeted to any specific objective or financial need. The views and opinions expressed in this Document have been prepared by third parties and do not necessarily reflect the views and opinions of EquitiesFirst.  EquitiesFirst has not independently examined or verified the information provided herein, and no representation is made that it is accurate or complete.  Opinions and information herein are subject to change without notice.  The content provided does not constitute an offer to sell (or solicitation of an offer to purchase) any securities, investments, or any financial products (“Offer”). Any such Offer shall only be made through a relevant offering or other documentation which sets forth its material terms and conditions. Nothing contained in this Document shall constitute a recommendation, solicitation, invitation, inducement, promotion, or offer for the purchase or sale of any investment product by First Holdings, LLC or its subsidiaries (collectively, “EquitiesFirst”), nor shall this Document be construed in any way as investment, legal, or tax advice, or as a recommendation, reference, or endorsement by EquitiesFirst. You should seek independent financial advice prior to making an investment decision about a financial product.

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The information contained in this Document is intended to be general in nature and is not personal financial product advice. Any advice contained in the Document is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. You should seek independent financial advice and read the relevant disclosure statements or other offer documents prior to making an investment decision about a financial product.

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