can i use zero coupon bond as a loan guarantee ?
Aug 02, 2009
in
Commercial Property Loans
such as in buying commercial real estate, will it be able to act as in the passbook loan, as the property itself is pledged and it has a positive cash flow to carry the loan ?
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One comment
tsbr1963 on August 2, 2009 at 2:26 pm
any asset can be used as a loan guarantee. The riskier the asset, the higher the pledge amount required, but yes, any smart lender would take ANY asset as a guarantee. The 0 coup bond may have no income stream, but it is absolutely worth SOMETHING and that gives it the ability to be used as collateral. Just find the right lender.