Even as traditional lenders are struggling to cope with the situation, lenders and borrowers in stock lending are finding it easier to operate in the market. The US stock market attained its peak in October 2007 at the period when index at Dow Jones Industrial Average exceeded 14,000 points. Then, it penetrated into a pronounced town down which markedly accelerated in October 2008. On March 2009, the Dow Jones mark had hit a trough of approximately 6,600. Later after four years, it achieved an all-time great level. It is debated and probable that easing of the quantitative aggressive policy at the Federal Reserve prompted the partial stock market recovery. So far, a leader in stock-based loans; Equities First is witnessing a high traction of the loans as confirmed by the Founder & President Al Christy.
The first notable symbol for a possible financial crisis happened on August 9, 2007 in United Kingdom after BNP Paribas cited a “full evaporation of liquidity”, after which it blocked withdrawing cash from three hedge funds. The event significance was not recognized immediately although it soon caused panic as savers and investors tried to liquidate their deposited assets within highly leveraged financial companies. The International Monetary Fund (IMF) approximated that bug European and US banks lost over $1 trillion on bad loans and toxic assets between January 2007 and September 2009. The losses increased to $2.8 trillion in the period between 2007 and 2010. Losses in US banks were forecasted to reach $1 trillion while European bank losses hit $1.6 trillion. Equities First’s lacrosse camp, The IMF approximated that US banks experienced an average of 60% following their losses with British & Eurozone banks losing 40%. As various banks and financial organizations find it hard to fund new investors and most of SMEs, stock-loans are still becoming popular and a preferred way of seeking working capital for investors and more information click here.Business, Business Development