Opening up opportunities through flexible financing

Optimise your cash flows and take prompt advantage of investment opportunities with Lombard Lending at Julius Baer.

What is Lombard Lending?

Lombard Lending enables you to utilise a wide spectrum of credit products that are secured against your portfolio. With a lombard loan, you retain your portfolio investment while increasing your financial flexibility. The maximum amount of the credit given depends on the lending value of your portfolio, as assessed by Julius Baer.

Who is Lombard Lending suited for?

Lombard Lending is suited for clients with an existing investment portfolio who wish to leverage their portfolio in pursuit of higher investment returns or for diversification reasons or who have short-term liquidity needs. Lombard Lending also enables engaging in derivative financial instruments by providing the required security margin.

Julius Baer’s Lombard Lending offering

We offer a wide range of customised Lombard Lending solutions to meet your individual financing requirements and achieve your personal investment goals. These include

  • Financing in form of fixed-term advances (whereby a fixed amount is advanced for a fixed period of time at a fixed interest rate) and current account overdrafts (whereby the loan amount and the time period is flexible but comes at a higher interest rate)
  • Margin requirement on derivative financial instruments such as foreign exchange forwards and options, equity options and interest rate swaps, both over-the-counter and exchange-traded
  • Guarantees and standby letters of credit

Benefits at a glance

Lombard Lending enables you to:

  • Remain invested in your existing portfolio and continue to benefit from its performance
  • Make use of a simple, cost-efficient and convenient source of liquidity
  • Enhance your yield by leveraging your portfolio
  • Diversify the risk profile of your portfolio
  • Profit from short-term investment opportunities
  • Enter into derivative financial instruments which require a security margin

Potential risks

Lombard-lending products inherently bear the following main risks:

  • Market volatility
  • Currency risk
  • Volatility of the credit exposure related to derivatives

All these can lead to collateral shortfalls and may cause Julius Baer to ask you for additional collateral or liquidation of existing collateral.

Further information

Would you like to learn more about the Lombard Credit solutions at Julius Baer? Your relationship manager would be delighted to provide you with more detailed information.