Lombard loan interest rates and costs.
The cost of a Lombard loan is a reference rate plus a spread. There is no published rate card; the spread reflects the specific position. This is how the pricing is built, and what moves it.
Built from two parts.
The interest cost of a Lombard loan — a securities-backed loan, or stock loan — is typically structured as a reference rate plus a spread: a market benchmark in the loan currency, such as SOFR, SONIA, or EURIBOR, plus a margin that reflects the risk of the specific transaction. There is no published rate card. The reference rate moves with the market; the spread is set per position, and its principal drivers are the loan-to-value, the recourse profile, the tenor, and the liquidity and volatility of the underlying.
The parts of the cost.
| Component | What it is | What moves it |
|---|---|---|
| Reference rate | A market benchmark in the loan currency (for example SOFR, SONIA, or EURIBOR). | Prevailing money-market and central-bank rates; the currency the loan is drawn in. |
| Spread (margin) | The margin added over the reference rate for the specific transaction. | The loan-to-value, the recourse profile, the tenor, and the liquidity and volatility of the underlying. |
| Arrangement / structuring | Any one-off fee for structuring and documentation, where applicable. | The complexity of the structure and jurisdiction; agreed per transaction, with no rate card. |
| Third-party costs | Qualified custody, and the borrower’s own legal counsel. | The custodian and the counsel the borrower chooses. |
A general description of pricing structure, not a quote or a rate card. Specific rates, spreads, and fees are set per position after review. See the disclosures.
Why one position prices differently.
- iLoan-to-value. A higher LTV leaves the lender a thinner cushion, so it generally carries a wider spread; a more conservative LTV prices more tightly. How the LTV itself is set is covered in how much you can borrow against shares.
- iiRecourse profile. A non-recourse structure puts the tail risk on the lender and prices wider than a full-recourse one; the difference is the cost of the downside protection.
- iiiLiquidity and volatility of the underlying. A deep, stable, large-cap underlying prices more tightly than a thin, volatile, or concentrated one, because the collateral is easier to value and to exit.
- ivTenor and currency. The term of the loan and the currency it is drawn in both feed the price; a cross-currency structure adds a hedging consideration on top of the coupon.
Because these levers interact, two positions of the same size can price very differently. This is why the firm publishes no rate card, and why the structure, not the headline rate, is the right basis for comparison — the argument set out in Why Structuring Beats Pricing.
Why there is no rate card.
A published rate would imply that price is a function of the loan alone. It is not: it is a function of the position and the structure. The reference rate is public and moves with the market; the spread is where the position is priced, and it can only be set after a review of the specific collateral, the structure, and prevailing institutional credit conditions. Indicative pricing is issued alongside indicative terms, typically within one to two business days of an enquiry, and always as part of a structure rather than as a standalone number.
On rates and costs.
Q · 01 What is the interest rate on a Lombard loan?
Q · 02 How is a securities-backed loan priced?
Q · 03 Does a higher loan-to-value cost more?
Q · 04 Are there costs beyond the interest?
Q · 05 Why is there no published rate?
Last reviewed 14 July 2026. This page describes pricing structure in general terms and is not a quote, a rate card, or personalised advice; see our editorial standards and disclosures.
Indicative pricing for a specific position?
Submit a confidential enquiry. A senior principal will issue indicative terms and pricing, typically within one to two business days.