SpreadWise provides institutional‑grade liquidity to taxable portfolios by offering synthetic loans built from OCC‑cleared S&P 500 box spreads. Clients can borrow at fixed or floating rates as low as 3.70% on amounts of $10,000 or more, with no credit checks, origination fees, or asset transfers, and the loan is fully collateralized and cash‑settled at maturity.
Funding
Funding not disclosed
Founders
Product
Problem
Investors with taxable portfolios often need cash without selling securities, but traditional loans or margin borrowing involve credit checks, high rates, and can trigger taxable events. Existing liquidity solutions either require asset transfers or expose the portfolio to market risk, limiting flexibility for advisors and their clients.
Solution
SpreadWise offers synthetic loans created from exchange‑cleared S&P 500 box spreads, providing institutional‑grade, fixed‑rate financing that is fully collateralized by the Options Clearing Corporation. Clients receive cash up‑front while their securities remain untouched, and the loan is repaid at a predetermined date with no floating‑rate exposure. The structure functions as a zero‑coupon bond with zero market risk, eliminating the need for credit checks, origination fees, or asset transfers. Advisors can request, resize, or repay loans through an online portal, and the cash is wired to the existing custodian account on a T+1 basis. This enables tax‑deductible interest and Treasury‑level rates, typically as low as 3.70% for 1‑year terms.
Target Audience
Primary customers are wealth management advisors and financial institutions that manage taxable investment portfolios and need low‑cost, non‑disruptive liquidity solutions for their clients.
Features
- Synthetic loan constructed from a four‑leg S&P 500 box spread, fully cleared by the OCC for minimal counterparty risk
- Fixed repayment amount at maturity, eliminating floating‑rate uncertainty
- No credit checks, origination fees, or required transfer of client assets
- Cash‑settled and cleared through the Options Clearing Corporation, ensuring zero exposure to index movements
- Online portal for advisors to request, adjust, or repay loans with just a few clicks, no options expertise needed
- Fast funding to existing custodian accounts on T+1 settlement
- Tax‑deductible interest with rates as low as 3.70% for 1‑year terms