Conduit borrowers act as intermediaries between entities in need of loans and lenders. They assume debt and provide securities loans to customers who cannot meet credit requirements, earning a profit in exchange for securing the loan. However, they bear full responsibility for repayment of the loan and should only be used after exploring all other […]

Conduit borrowers act as third-party lenders, assuming debt and providing securities loans to customers who don’t meet original lender’s credit requirements. They negotiate terms and conditions with customers, but bear full liability to the original lender for repayment of the loan. Using a conduit borrower is common, but should only be used after investigating all […]